Apple may raise iPhone 18 prices after Q2 pull-in, says Jefferies
'We saw more evidence of strong iPhone demand in 2Q25,' said Jefferies, pointing to around 22% year-over-year growth in equipment sales reported by major U.S. telecoms.
That figure, the highest in six quarters, was 'driven by pull-in' ahead of potential tariffs, the firm noted, suggesting that industry trackers like Counterpoint and IDC may be underestimating Apple's shipment growth.
Jefferies reiterated its forecast of an 8% year-on-year increase in iPhone shipments for the June quarter, above Counterpoint's and IDC's reported figures of 4% and 1.5%, respectively.
Despite this strength, Jefferies does not expect a stock re-rating based solely on current data.
Looking ahead, Jefferies sees Apple (NASDAQ:AAPL) raising the selling price of the iPhone 18 Slim, Plus, and Pro Max models by $50 to help offset 'higher component costs and China tariff.'
The price hike would represent a 4%–5% increase year-over-year, but Jefferies cautioned that the move 'may barely cover the above cost increases.'
Jefferies also highlighted Apple's accelerating shift of iPhone production to India. It expects 18% of iPhone 18 units to be made in India in the second half of 2025, rising to 35% by late 2026.
However, it warned that lower yields and higher logistics costs in India could add pressure to margins.
'Supply chain security and India's localization requirement may prompt AAPL to move even if financially it does not justify the move,' Jefferies added.
Related articles
Apple may raise iPhone 18 prices after Q2 pull-in, says Jefferies
After soaring 149%, this stock is back in our AI's favor - & already +25% in July
Surge of 50% since our AI selection, this chip giant still has great potential
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 minutes ago
- Yahoo
Citi Raises PT for Super Micro Computer (SMCI), Keeps Neutral Rating
Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the 12 Best Performing AI Stocks So Far in 2025. On July 11, Citi increased its price target for Super Micro Computer, Inc. (NASDAQ:SMCI) from $37 to $52 but kept a Neutral rating. The firm noted that the demand for AI servers is improving. Citi analysts pointed out that Super Micro Computer, Inc.'s (NASDAQ:SMCI) management is optimistic about fulfilling 'current commitments over the next two quarters as Blackwell GPU supply constraints ease.' A team of technicians in a server room, testing and managing the newest server solutions. Despite this, the analysts remain worried about profit margins because of the competition from DELL and HPE. The analysts believe this 'will temper margin expansion expectations.' Citi forecasts Super Micro Computer, Inc.'s (NASDAQ:SMCI) Q4 fiscal 2025 revenue to be $6.07 billion, which represents a 13.4% increase year-over-year and a 32% increase from the previous quarter. The firm expects EPS of $0.45, roughly in line with consensus estimates. For the first quarter of fiscal 2026, Citi forecasts revenue to increase to $7.02 billion and EPS to $0.65, both above consensus estimates. Super Micro Computer, Inc. (NASDAQ:SMCI) is a technology company that specializes in application-optimized total information technology solutions with server, AI, storage, IoT, switch systems, software, and support services. The company is focused on delivering 'first to market' innovation for Enterprise, Cloud, AI, and 5G Telco/Edge IT Infrastructure. While we acknowledge the potential of SMCI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best Performing Stocks in the Last 6 Months and 12 Most Owned Stocks by Hedge Funds So Far in 2025. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
2 minutes ago
- Yahoo
Stocks Supported by Fed Rate Cut Hopes
The S&P 500 Index ($SPX) (SPY) today is up +0.90%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.77%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +1.28%. September E-mini S&P futures (ESU25) are up +0.95%, and September E-mini Nasdaq futures (NQU25) are up +1.36%. Stock indexes are moving higher today as they recover from some of last Friday's sharp losses. Strength in the Magnificent Seven technology stocks and semiconductor chip makers is supporting the broader market. Additionally, the expectation that last Friday's dismal payroll and ISM manufacturing reports will prompt the Fed to lower interest rates is underpinning equity prices. The chances of a Fed rate cut at the September FOMC meeting rose to 90% from 40% before the reports were released. More News from Barchart Find Winning Momentum Trades With This Moving Average Stock Screener Tariffs, Earnings and Other Can't Miss Items this Week This Blue-Chip Dividend Stock Is Stuck in the Tariff Crosshairs. Can Cost Cuts Save the Day? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. In the latest tariff news, President Trump last Thursday raised tariffs on some Canadian goods to 35% from 25% and announced a 10% global minimum, along with tariffs of 15% or higher for countries with trade surpluses with the US, effective after midnight on August 7. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced. The markets this week will focus on earnings reports and any fresh tariff or trade news. Later this morning, Jun factory orders are expected to fall -4.8% m/m. On Tuesday, the June trade deficit is expected to narrow to -$61.3 billion. Also on Tuesday, the July ISM services index is expected to climb by +0.7 to 51.5. On Thursday, weekly initial unemployment claims are expected to increase by +3,000 to 221,000. Also on Thursday, Q2 nonfarm productivity is expected to be +2.0% with unit labor costs rising +1.5%. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 90% at the September 16-17 FOMC meeting and 76% at the following meeting on October 28-29. Early results show that S&P 500 earnings are on track to rise +4.5% for the second quarter, better than the pre-season expectations of +2.8% y/y, according to Bloomberg Intelligence. With over 66% of S&P 500 firms having reported Q2 earnings, around 82% exceeded profit estimates. Overseas stock markets today are mixed. The Euro Stoxx 50 is up sharply by +1.35%. China's Shanghai Composite rebounded from a 2-week low and closed up +0.66%. Japan's Nikkei Stock 225 fell to a 1.5-week low and closed down -1.25%. Interest Rates September 10-year T-notes (ZNU25) today are up +4 ticks. The 10-year T-note yield is down -1.4 bp to 4.202%. Sep T-notes today recovered from overnight losses and rallied to a 3-month nearest-futures high, and the 10-year T-note yield fell to a 1-month low of 4.196%. T-notes are climbing on positive carryover from last Friday's weaker-than-expected payroll and ISM manufacturing reports, which boosted the chance of a Fed rate cut at next month's FOMC meeting to 90% from 40% before the reports. Also, today's -2% drop in WTI crude oil prices has reduced inflation expectations, a bullish factor for T-notes. In addition, today's strength in European government bonds is providing carryover support to T-notes. Gains in T-notes are limited by a rebound in equity markets, which curbs safe-haven demand for government securities. Also, supply pressures are weighing on T-notes as the Treasury will auction $125 billion of T-notes and T-bonds in this week's August quarterly refunding, beginning with Tuesday's $58 billion auction of 3-year T-notes. European government bond yields today are moving lower. The 10-year German bund yield fell to a 1.5-week low of 2.638% and is down -3.5 bp to 2.643%. The 10-year UK gilt yield dropped to a 1-month low of 4.502% and is down -1.6 bp to 4.512%. The Eurozone Aug Sentix investor confidence index unexpectedly fell -8.2 to -3.7, weaker than expectations of an increase to 6.9. Swaps are discounting the chances at 16% for a -25 bp rate cut by the ECB at the September 11 policy meeting. US Stock Movers Strength in the Magnificent Seven technology stocks is supporting gains in the broader market. Alphabet (GOOGL) is up more than +1%. Also, Nvidia (NVDA), Tesla (TSLA), Meta Platforms (META), Apple (AAPL), and Microsoft (MSFT) are up more than +1%. Chip stocks are moving higher today, a supportive factor for the overall market. Advanced Micro Devices (AMD), Marvell Technology (MRVL), Broadcom (AVGO), Micron Technology (MU), and ARM Holdings Plc (ARM) are up more than +2%. Also, Lam Research (LRCX), ASML Holding NV (ASML), Applied Materials (AMAT), and Microchip Technology (MCHP) are up more than +1%. Steelcase (SCS) is up more than +46% after being acquired by HNI for $2.2 billion or about $18.30 per share. Idexx Labs (IDXX) is up more than +22% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 revenue of $1.11 billion, better than the consensus of $1.07 billion, and raising its full-year EPS forecast to $12.40-$12.76 from a previous forecast of $11.93-$12.43, stronger than the consensus of $12.21. Wayfair (W) is up more than +11% after reporting Q2 adjusted EPS of 87 cents, well above the consensus of 33 cents. Tyson Foods (TSN) is up more than +4% after reporting Q3 sales of $13.88 billion, above the consensus of $13.55 billion. Spotify (SPOT) is up more than +7% after it said it will increase the monthly cost of premium subscriptions in Markets across South Asia, the Middle East, Africa, Europe, and Latin America. Walt Disney (DIS) is up more than +2% to lead gainers in the Dow Jones Industrials after Morgan Stanley raised its price target on the stock to $140 from $120. BJ's Restaurants (BJRI) is up more than +1% after Benchmark Co. upgraded the stock to buy from hold with a price target of $44. Bruker Corp (BRKR) is down more than -11% after reporting Q2 revenue of $797.4 million, below the consensus of $810.2 million. ON Semiconductor (ON) is down more than -7% to lead losers in the S&P 500 and Nasdaq 100 after forecasting Q3 adjusted gross margin of 36.5% to 38.5%, the midpoint weaker than the consensus of 37.7%. Berkshire Hathaway (BRK.B) is down more than -2% after reporting Q2 operating earnings fell -3.8% y/y to $11.16 billion. Waters (WAT) is down more than -2% after forecasting Q3 adjusted EPS of $3.15-$3.25, the midpoint below the consensus of $3.23. Earnings Reports (8/4/2025) Axon Enterprise Inc (AXON), Coterra Energy Inc (CTRA), Diamondback Energy Inc (FANG), Equity Residential (EQR), IDEXX Laboratories Inc (IDXX), Loews Corp (L), ON Semiconductor Corp (ON), ONEOK Inc (OKE), Palantir Technologies Inc (PLTR), SBA Communications Corp (SBAC), Simon Property Group Inc (SPG), Tyson Foods Inc (TSN), Vertex Pharmaceuticals Inc (VRTX), Waters Corp (WAT), Williams Cos Inc/The (WMB). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
2 minutes ago
- Yahoo
Wedbush Raises Palantir (PLTR) Price Target, Keeps Outperform Rating
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the 12 Best Performing AI Stocks So Far in 2025. On July 10, Wedbush increased its price target for Palantir Technologies Inc. (NASDAQ:PLTR) from $140 to $160 while keeping an Outperform rating. According to Wedbush, the company has a 'golden path to become the next Oracle (ORCL)' in the coming years. The research firm believes that Palantir Technologies Inc. (NASDAQ:PLTR) is positioned as a core winner in the trillions of AI spending anticipated over the next few years. A software engineer manipulating a vast network of code on virtual monitors. The firm pointed out that the company's AI platform strategy is turning into a foundational platform for enterprises implementing AI use cases in different sectors. Wedbush noted that new and existing customers are 'waiting in line' to sign up for different aspects of Palantir Technologies Inc.'s (NASDAQ:PLTR) technology stack. Additionally, Wedbush believes that the market does not fully see the company's potential to generate over $1 billion in revenue over the next few years through its AI platform US commercial business. Palantir Technologies Inc. (NASDAQ:PLTR) is an American software and AI company that specializes in big data analytics. It serves key government and commercial enterprises. While we acknowledge the potential of PLTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best Performing Stocks in the Last 6 Months and 12 Most Owned Stocks by Hedge Funds So Far in 2025. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
