Tech giant Apple (AAPL) has recently seen stronger-than-expected iPhone sales, according to four-star UBS analyst David Vogt. Indeed, he pointed to supply chain and CounterPoint research data showing that iPhone sales in April and May were up by mid-teen percentages compared to last year. Vogt attributes this unusual jump in demand to worries about possible iPhone price increases in the future, thanks to potential U.S. tariffs on Chinese and Southeast Asian exports.
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As a result, UBS estimates that iPhone sales through the end of May are about 4 million units higher than the same period last year. However, despite this short-term boost, Vogt maintains a Neutral rating on Apple with a $210 price target. This is because he views the spike as only a “modest relief” and doesn’t believe it reflects a sustainable long-term trend, especially given that demand seems to be driven by fear rather than product innovation.
In addition, Vogt expects iPhone demand to slow down going forward. In fact, he noted that Apple’s recent Worldwide Developers Conference didn’t introduce anything particularly exciting, and the latest UBS Evidence Lab survey showed that consumer purchase intent was weak for Apple products. Because of this, he believes that the current strength in sales may not last and could taper off in the coming quarters.
Is Apple a Buy or Sell Right Now?
Overall, analysts have a Moderate Buy consensus rating on AAPL stock based on 16 Buys, nine Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $226.94 per share implies 15.2% upside potential.
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