Apple's (AAPL) June iPhone and total company revenue were in-line with growth forecasts of 20% and 15%, respectively, despite a challenging supply chain and component backdrop, UBS said Wednesday in a note.
The company is scheduled to report fiscal Q3 results on July 30.
UBS expects total revenue, iPhone revenue, and diluted EPS to track its estimates of $107.8 billion, $53.3 billion, and $1.84, respectively.
The iPhone gained market share in the June quarter because Apple was the only vendor that did not raise prices. As memory prices have increased, demand for higher-priced smartphones has outpaced demand for mid-range and low-end phones, partly due to memory allocation. However, UBS said the iPhone's market share gains have already been priced into the stock.
Higher contract memory pricing should pressure June iPhone gross margin relative to the March quarter, though the impact should be modestly offset by the final batch of lower-cost memory inventory, the note added.
UBS maintained a neutral rating on Apple with a price target of $296.
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