Phillip Securities Downgrades Apple to Reduce, Keeps $290 Target as Memory Costs Rise
Updated
Updated · Yahoo Finance · Aug 8
Phillip Securities Downgrades Apple to Reduce, Keeps $290 Target as Memory Costs Rise
2 articles · Updated · Yahoo Finance · Aug 8
Summary
Phillip Securities cut Apple to Reduce from Neutral while leaving its price target at $290, citing rising memory costs and supply constraints.
Apple's own outlook reinforced that caution: fiscal Q4 revenue guidance of $111.7 billion to $113.7 billion missed Wall Street's roughly $114.3 billion estimate, and management sees gross margin slipping to 47%-48%.
Tim Cook described the memory-cost spike as a "hundred-year flood," while the analyst said Apple Intelligence has shown little evidence so far of driving device upgrades.
The downgrade comes even as Apple topped $10 billion in annual India sales, up from about $9 billion a year earlier, with India also producing 1 in 4 iPhones through five plants.
Investor positioning has stayed relatively firm despite the caution, with 170 hedge funds holding Apple in Q1 2026 versus 169 in late 2025 and short interest at just 1%.
With Wall Street sounding alarms on shrinking margins, why is Apple Intelligence failing to trigger the massive upgrade cycle investors desperately need?
Could hidden labor controversies and surging memory costs derail Apple's $10 billion triumph and grand supply-chain escape from China?
Is Apple's historic sales boom in India driven by genuine wealth, or just a fragile surge in consumer credit across smaller cities?