S&P 500 flirts with fresh record high, but chip-led softness weighs
Investing.com - UBS maintained its Neutral rating and $210.00 price target on Apple (NASDAQ:AAPL) stock, citing a significant drop in iPhone demand during June after two months of strong sales. According to InvestingPro data, Apple is currently trading slightly above its Fair Value, with analyst targets ranging from $173 to $300.
UBS analyst David Vogt reported that iPhone sell-through declined 18% year-over-year in June as consumer demand "fizzled." The analyst attributed the earlier strong performance to consumer fears of potential iPhone price increases related to broad-based tariffs. Despite these fluctuations, Apple maintains strong fundamentals with revenue growth of 4.91% over the last twelve months and a robust financial health score.
Despite the June slowdown, UBS estimates iPhone units for the entire June quarter reached approximately 45 million, representing a 3.4% year-over-year increase. This figure exceeds the firm’s previous estimate by roughly 1.5 million units.
The firm noted that continued weakness in the U.S. dollar during the quarter should provide a slight tailwind to revenue, a change from prior expectations of a "slight headwind" for the June quarter.
Based on these factors, UBS slightly raised its June quarter estimates for Apple while lowering September quarter projections due to "likely iPhone softness" that is expected to be "below seasonal" following the earlier demand pull-forward. With earnings due in 9 days, investors can access comprehensive analysis and 13 additional key insights through InvestingPro’s detailed research report.
In other recent news, Apple has announced a $500 million commitment with MP Materials to purchase American-made rare earth magnets and establish a new recycling facility in California. This multiyear deal includes plans to develop magnets at MP Materials’ facility in Fort Worth, Texas, specifically for Apple products. Additionally, Apple launched its online store in Saudi Arabia, marking its first retail presence in the Kingdom (TADAWUL:4280), with plans for physical stores in 2026. The online store offers personalized services and supports Arabic-language features, enhancing customer experience in the region.
In the entertainment sector, Apple TV+ received a record 81 Emmy nominations, led by the series "Severance" with 27 nominations. Meanwhile, Apple is expected to adopt Samsung (KS:005930) Display’s crease-free technology for its foldable iPhone, set for mass production in 2026, according to TF International Securities analyst Ming-Chi Kuo. This move is anticipated to benefit suppliers aligned with Samsung Display. Jefferies shared a cautious outlook on Apple’s smartphone demand, noting that iPhone shipments increased by 1.5-4% in the second quarter of 2025, slightly below their 8% growth estimate.
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