Apple Seen Shaky on Two Key Pillars of Outperformance -- Market Talk

1323 ET - The historic recipe for Apple's outperformance has three components, Morgan Stanley analysts write in a note: strength in iPhone, Services, and gross margins. After the company's third-quarter print, two of those three ingredients may be souring, they write. Services growth is decelerating due to foreign exchange headwinds and a slowdown in mobile gaming, while memory costs are weighing on gross margins. Until there's an inflection in supply or demand or a new catalyst from, say, Siri AI or the foldable iPhone, "shares are likely to remain soft as the market sorts through/looks to regain confidence that estimates will move higher again," the analysts write. Apple is down 9.8%. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

July 31, 2026 13:23 ET (17:23 GMT)