ubs maintains neutral rating on apple amid softening iphone demand

Apple Inc. has received a Neutral rating from UBS, with a price target of $236.

UBS Analysis

UBS's analysis, based on UBS Evidence Lab data, indicates a shift in the market dynamics for high-end iPhone models, with shorter wait times suggesting softer demand and improved supply compared to the previous year.

Despite the recent launch of Apple Intelligence in US English, wait times have not increased week-over-week.

UBS Performance Estimate

UBS does not anticipate a significant impact on Apple's performance in the December 2024 quarter, estimating a sell-in of 78 million units, in line with last year's figures.

Evercore ISI Outperform Rating

Evercore ISI maintains an Outperform rating on Apple, citing a 15% increase in App Store revenue in October as a sign of robust performance in Apple's services segment.

Citi Top Pick

Citi also identifies Apple as a top pick, highlighting its strong market presence.

Regulatory Scrutiny in Europe

However, Apple faces regulatory scrutiny in Europe, which could impact investor sentiment and the company's strategic decisions.

Market Capitalization and P/E Ratio

Despite these challenges, Apple's market capitalization remains strong at approximately $3.36 trillion, and its price-to-earnings (P/E) ratio of 36.38 reflects confidence in its long-term growth prospects.

AI Features and Consumer Interest

The introduction of AI features could play a crucial role in shaping consumer interest and sales performance for Apple.

Adapting to Changing Preferences

The company's ability to adapt to changing consumer preferences and market conditions will be crucial for its future success.

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