03:46 PM EDT, 07/31/2026 (MT Newswires) -- Apple ( AAPL ) faces currency headwinds and tightening memory-supply conditions that are expected to weigh on iPhones, Macs and iPads in fiscal Q4, UBS Securities said Thursday in a report.

The company's "lack of a robust AI strategy remains a challenge" amid "limited estimate upside and an elevated valuation," the report said.

Foreign-exchange fluctuations are expected to trim Q4 growth by 250 basis points, the report said. Apple ( AAPL ) expects gross margin of 47% to 48%, including a 100 basis point tariff refund, and UBS projects the figures to drop to 45.9% in the following quarter as the tariff benefit fades.

"Investor fund flows could shift back toward hyperscalers, semiconductors, and networking and optical companies, capping Apple's ( AAPL ) valuation multiples," the report said.

UBS maintained its neutral rating on Apple ( AAPL ) stock with a $296 price target.

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