Bernstein analysts cut Apple Inc.'s earnings per share forecast to $2.87 from $3.00 for the December quarter, citing sharply higher NAND and DRAM costs that will pressure iPhone margins and miss the $2.92 Wall Street consensus.
The revised estimate signals potential disappointment when Apple reports late January 2027. Rising memory-chip prices directly hit production expenses on the iPhone, Apple's largest revenue driver, eroding profitability despite robust demand for the latest devices.
Apple shares traded at $335.07, down 0.3 percent today, underperforming the Nasdaq, which rose 0.3 percent to 27,007. The gap reflects investor concern over margin compression.
Bernstein maintained its Outperform rating and $370 price target, implying 10 percent upside. The firm argues Apple's ecosystem—hardware, software, and services—positions it as the dominant consumer AI platform. Control over the user experience allows seamless AI deployment across iPhones, iPads, and Macs, a strategic advantage Bernstein believes will drive long-term revenue growth and offset component cost fluctuations.
