Jefferies Sticks to Underperform Rating on Apple Amid Pricing Concerns

Jefferies has maintained its Underperform rating on Apple Inc. (NASDAQ:AAPL) despite recent product launches, including the iPhone 18 P/PM and Duo foldable device.

The firm notes that Apple's pricing strategy prioritizes volume over margin, with prices for the new models varying between 6-8% below Jefferies' estimates.

The unchanged pricing on older models could drive strong demand but add pressure to Apple's gross profit margin of 48.65%, according to Jefferies.

Other analysts have weighed in on Apple, with Lynx Equity downgrading the company due to supply chain challenges and HSBC reiterating a Buy rating based on projected earnings per share.