Aletheia Capital's Stance on Apple#
Aletheia Capital has reiterated a Sell rating on Apple Inc. (NASDAQ:AAPL), setting a price target of $205.00. This target is significantly lower than Apple's current stock price of $273.05 and below the average analyst consensus, which ranges from $215 to $350.
Strong Performance Offset by Cost Concerns#
Despite reporting better-than-expected results and a positive outlook fueled by soaring iPhone sales, Aletheia Capital is concerned about future profitability. Apple achieved a record high margin of nearly 41% in the first quarter of fiscal 2026, thanks to favorable memory pricing secured in mid-2025. However, memory prices have surged since then, which could negatively impact hardware profitability later in 2026. Apple has indicated that it expects a flat gross margin in the upcoming quarter but acknowledges the rising costs of memory components.
Addressing Memory Cost Pressures#
Apple is exploring various options to tackle the pressures from increasing memory costs. Aletheia Capital's decision to maintain its Sell rating stems from worries about how these rising component costs may hinder future profitability.
Leadership Transition and Analyst Reactions#
In related news, Apple is undergoing a significant leadership change, with CEO Tim Cook set to step down in August 2026. John Ternus, the Senior Vice President of Hardware Engineering, will take over as CEO. This transition has prompted several analysts to reaffirm their ratings on Apple. Evercore ISI has maintained an Outperform rating with a $330 price target, while BofA Securities and Melius have reiterated Buy ratings, setting targets of $325 and $350, respectively. Analysts generally express confidence in Apple's strategic direction during this leadership change.