On Monday, UBS maintained its Neutral rating on Apple Inc. (NASDAQ:AAPL) with a steady price target of $236.00. The firm's analysis, based on UBS Evidence Lab data, observed that the wait times for high-end iPhone models are shortening, indicating a combination of softer demand and improved supply compared to the previous year.
The data, which covers iPhone availability across 30 regions, reveals that the current average wait times are either shorter or roughly the same as last year for various iPhone models. This trend persists despite the recent introduction of Apple Intelligence in US English, which has not spurred a week-over-week increase in US wait times.
UBS notes that while Apple has yet to unveil a "killer" AI application that could significantly boost demand for iPhones, consumer familiarity with the new features could potentially alter wait time trends, especially with the holiday season approaching. Nevertheless, the firm does not anticipate these factors to materially affect Apple's December 2024 quarter, where it estimates a sell-in of 78 million units, mirroring last year's figures.
In other recent news, Apple and Arista Networks (NYSE:ANET) remain top picks for Citi due to their strong market presence and potential for ongoing success. Arista Networks recently reported a robust financial performance for the third quarter, with a 20% year-over-year increase in revenue, reaching $1.81 billion. The company also anticipates a 15% to 17% revenue growth in 2025, targeting $8 billion in revenue.
Meanwhile, Taiwan Semiconductor Manufacturing Co. (TSMC) maintains its US investment strategy, committing to a $65 billion investment in constructing new manufacturing facilities in Arizona. On the other hand, Arm Holdings (NASDAQ:ARM)' revenue forecast matched Wall Street expectations, resulting in a 4.5% decline in its stock price. The company expects third-quarter earnings per share to be in the range of 32 to 36 cents.
In regulatory news, Apple is on the brink of receiving a fine from European Union antitrust regulators under the new Digital Markets Act. The specifics of the fine and the practices leading to this action have not been disclosed.
Finally, Evercore ISI maintains a positive outlook on Apple, reiterating its Outperform rating and a $250.00 price target for the tech giant's shares, following a 15% rise in App Store revenue in October.
InvestingPro Insights
As Apple navigates the challenges of softening demand for high-end iPhones, InvestingPro data offers additional context to the company's financial position. Apple's market capitalization stands at an impressive $3.36 trillion, reflecting its dominant position in the tech industry. The company's P/E ratio of 36.38 suggests that investors are still willing to pay a premium for Apple's stock, despite the concerns raised by UBS regarding iPhone demand.
InvestingPro Tips highlight Apple's financial strength and market position. The company has raised its dividend for 13 consecutive years, demonstrating a commitment to shareholder returns even as it faces potential headwinds in iPhone sales. Additionally, Apple is noted as a prominent player in the Technology Hardware, Storage & Peripherals industry, which aligns with its continued focus on hardware products like the iPhone.
It's worth noting that InvestingPro offers 15 additional tips for Apple, providing investors with a more comprehensive analysis of the company's prospects. These insights could be particularly valuable as the market assesses the impact of AI features and holiday season sales on Apple's performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.