UBS Keeps Neutral on Apple (AAPL), Sees iPhone Demand Drop in June

Apple Inc. (NASDAQ:AAPL) is one of the 12 Most Owned Stocks by Hedge Funds So Far in 2025. On July 22, UBS reiterated its “Neutral” rating on Apple Inc. (NASDAQ:AAPL) with a price target of $210.

The analyst from UBS, David Vogt, noted that there was a significant drop in iPhone demand in June after two strong months of sales. In June, iPhone sales dropped 18% compared to the same period last year.

The analyst believes that the earlier strong performance was because consumers were concerned about potential iPhone price increases due to tariffs.

Even with the slowdown in June, UBS estimates that Apple Inc. (NASDAQ:AAPL) sold about 45 million iPhone units in the June quarter, which represents an increase of 3.4% year-over-year. This figure is about 1.5 million units higher than the previous estimate by UBS.

The research firm pointed out that the weaker US dollar during the quarter should help provide a slight tailwind to Apple Inc.’s (NASDAQ:AAPL) revenue.

UBS slightly increased its estimates for Apple Inc.’s (NASDAQ:AAPL) June quarter but lowered its forecast for the September quarter because of “likely iPhone softness” that is anticipated to be “below seasonal” after the earlier demand pull-forward.

Apple Inc. (NASDAQ:AAPL) is an American multinational technology company that is known for its products like the iPhone, iPad, and Mac computers.

While we acknowledge the potential of AAPL 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: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.