Apple (AAPL) Delivers Solid Beat — Jefferies Softens Bearish Stance

Core Viewpoint - Apple Inc. has received a rating upgrade from Jefferies, reflecting positive revenue growth and performance in its product categories, despite some challenges in iPhone sales [1][5]. Financial Performance - Apple's revenue growth for the September quarter was approximately 8%, exceeding Jefferies' estimates by 6% and consensus expectations by 1% [1][5]. - iPhone revenue growth was weaker at 6%, while other products like Mac and iPad outperformed expectations [2][5]. - The company's gross margin was reported at 47.2%, beating estimates by approximately 0.5%, despite facing $1.1 billion in tariff costs [2][5]. Future Guidance - Apple has guided for a revenue growth of 10%-12% in the December quarter, which is 6% above consensus forecasts [3][5]. - The slight increase in estimates is attributed to an assumed $100 price increase for the iPhone 18 to cover higher component costs, which may limit volume growth [3][4][5]. Market Position - The firm notes that the product mix may negatively impact margins, but strong performance in the first quarter of FY26 and expectations for the iPhone 18 Fold could mitigate downside risks [4][5].