UBS analysts have adjusted their outlook on Apple Inc. due to weaker iPhone sales.
UBS analysts maintain a price target of $236.00 for the stock, but caution that current valuations may indicate overvaluation.
iPhone sales have declined, leading to revised estimates for unit sales and revenue for the upcoming December quarter. UBS now projects 74 million units sold and $67.2 billion in revenue for the quarter. These adjustments have resulted in a 2% reduction in anticipated revenue for the quarter, now projected at $120.8 billion. Earnings per share (EPS) have also been lowered to $2.25.
Despite the challenges in iPhone sales, there is a slight upward adjustment in the revenue forecast for Apple's Services segment, attributed to strong performance in the App Store.
Apple faces increasing competition from domestic brands, particularly in China, and is exploring strategic partnerships to enhance its offerings. The company is also involved in an upcoming U.S. antitrust trial concerning online search.
Market reactions to Apple's stock and competitive positioning have been mixed, reflecting the complexities of the tech landscape.
The focus will be on Apple's ability to innovate and maintain market leadership.