UBS Sticks with Neutral Rating on Apple Amid Foldable iPhone Launch
UBS has reaffirmed its neutral rating on Apple Inc. (NASDAQ:AAPL) following the company's recent product announcement event, where it unveiled a foldable iPhone called the Duo. The analyst firm noted that while the price increase for the Pro and Pro Max models may not fully offset higher memory costs, a larger $200 increase would have weighed on iPhone demand.
The Duo, priced starting at $1,999, represents a form factor change for the iPhone lineup, which now consists of three models: the Pro, Pro Max, and Duo. Apple raised prices for the Pro and Pro Max models by $100. UBS believes that this pricing strategy is cautious, as it would have been more challenging to absorb a larger price increase.
The analyst firm also pointed out that 13 analysts have recently revised their earnings estimates downward for the upcoming period. This trend aligns with broader analyst sentiment and suggests potential challenges for Apple's performance in the near future.