Jefferies Keeps Underweight Rating on Apple Amid Pricing Concerns

Jefferies has reiterated its Underperform rating on Apple Inc. (NASDAQ:AAPL) with a price target of $263.66, citing concerns about the company's pricing strategy.

The firm noted that Apple appears to be prioritizing volume over margin, as seen in the launch of the iPhone 18 P/PM and Duo foldable device.

While the Duo is priced identically to Jefferies' earlier estimate, the iPhone 18 P/PM saw price increases of 7% to 9% for the 256GB and 512GB versions.

This strategy may drive strong demand but add margin pressure, as Apple currently maintains a gross profit margin of 48.65%.