Jefferies Doubles Down on Underperform Rating for Apple Amid Pricing Strategy Concerns

Jefferies has reconfirmed its Underperform rating for Apple Inc. (NASDAQ:AAPL) and set a price target of $263.66.

The firm cited the recent launch of the iPhone 18 P/PM and Duo foldable device, with the latter being priced identically to Jefferies' estimates.

However, the iPhone 18 P/PM saw price increases ranging from 7% to 9% for the 256GB and 512GB versions, while the 1TB and 2TB models had prices in line with expectations.

Jefferies believes Apple is prioritizing volume over margin, which could lead to strong demand but add pressure on margins. The company's current gross profit margin stands at 48.65%.