Damo: Microfall apples to $360, short-term lack of catalysts

On 4 August, Morgan Stanley published a study that indicated that Apple ' s third financial season performance was generally in line with expectations, but that service revenue was only $30.7 billion, with growth slowing to 12 per cent below market expectations, largely hampered by exchange factors and weak mobile phone games markets; and that the service Māori ratio contracted to 75.6 per cent, or less. The Maori Rate for Apple's Fourth Financial Quarter was guided by a range of 47 to 48 per cent, with only about 46.5 per cent of the core Māori rate after the elimination of about 1 percentage point of tariff refunds and 150 basis points of contraction in the ring, and less than expected. The Bank believes that the double pressure of weak guidance, which reflects supply chain constraints and increased storage costs, is emerging, with a downward adjustment from $10.39 to $10 per share of the revenue forecast for the 2027 fiscal year, a downward adjustment from $364 to $360 in target prices, and the maintenance of an “encumbrance” rating, which is considered short-term to lack catalysts, still to await clarity on the iPhone 18/folding, the official roll-out of Siri AI and international regulatory approvals。