AAPL
Jefferies hits the brakes
Apple woke up to a not-so-fun Monday: Jefferies cut the stock to Underperform and slapped a $264 price target on it, which helped knock shares lower. The worry du jour is iPhone supply-chain pressure and costs — because apparently even the most valuable company in the world can still get thrown off by memory chips and margin math.
Munster says: zoom out, friend
Deepwater’s Gene Munster basically said the downgrade is missing the big picture. His argument is classic Apple: don’t obsess over the hiccups, watch the pricing power.
- He thinks iPhone prices could rise about 15%
- He says most buyers pay monthly through Apple or their carrier, so the sticker shock gets watered down
- He’s betting the next big upgrade cycle — especially around AI and personalized hardware — still has room to run
The real Apple story is still the iPhone
Munster also pointed to Apple’s recent quarter, where the company beat revenue and EPS estimates again and posted its strongest June quarter ever. That’s the kind of backdrop that makes bearish calls feel a little like yelling at a parade from across the street.
The tension here is pretty simple: if supply issues squeeze the near-term, Apple could miss Street expectations. But if pricing stays firm and the next upgrade cycle gets legs, the company could turn a temporary headache into a very expensive shrug.
Big picture: this is less about one analyst note and more about whether Apple’s pricing power and AI story can overpower supply-chain drama. Investors are arguing over the next few quarters; Apple is still selling the long game.