UBS Stays Neutral on Apple as iPhone Demand Surge Seen as Temporary

UBS is holding its Neutral rating on Apple Inc. (NASDAQ:AAPL) with a $210 price target, noting that while recent iPhone sales data shows a strong start to the June quarter, the boost is likely short-lived and not indicative of a lasting trend.

According to supply chain insights and early sales estimates from Counterpoint, global iPhone sell-through for April and May is tracking in the mid-teens percentage growth year-over-year. UBS attributes this jump—similar to April’s 14% increase—to consumer concerns about potential iPhone price hikes driven by U.S. tariffs on Chinese and Southeast Asian imports, which may have pulled forward some demand.

iPhone sell-through is currently estimated to be around 4 million units higher than the same period last year. While that offers a temporary lift, UBS notes that these gains occurred during what are typically slower months for sales. With the June quarter typically averaging about 45 million iPhone units, the recent strength may not be sustainable.

Furthermore, the firm points to underwhelming announcements at Apple's WWDC and subdued purchase intent observed in its latest UBS Evidence Lab survey as reasons to expect a cooling in demand ahead. In UBS’s view, the market is unlikely to project this early-quarter momentum into future quarters without stronger product catalysts or demand drivers.