UBS Reaffirms Neutral Rating on Apple Ahead of Foldable iPhone Launch
UBS has reaffirmed its neutral rating on Apple Inc., citing concerns over the company's pricing strategy for its latest iPhone lineup. The firm noted that while the foldable iPhone Duo represents a form factor change, it also comes with a hefty price tag of $1,999.
The analyst believes that a larger price increase would have weighed on iPhone demand, but is cautious in its assessment. This view aligns with broader analyst sentiment, as 13 analysts have recently revised their earnings estimates downward for the upcoming period.
UBS also noted that Apple's pricing strategy may not fully offset higher memory costs. The firm pointed out that the company raised prices for the Pro and Pro Max models by $100, but did not take this opportunity to increase prices further.