Bernstein analysts maintained an Outperform rating on Apple Inc. while warning of challenges for the upcoming December quarter.
Rising memory chip costs threaten the company's gross margins and earnings per share. Bernstein lowered its fiscal first-quarter EPS estimate following an analysis of Apple's bill of materials.
Stronger international pricing may provide a partial offset to these increased production costs. The firm noted these factors introduce a note of caution regarding Apple's short-term profitability.