12:36 PM EDT, 09/10/2024 (MT Newswires) -- Apple ( AAPL ) iPhone 16's specifications were largely in line with expectations, and there was no price hike or groundbreaking AI use case, leading to an anticlimactic launch, UBS said in a note Monday.

Apple ( AAPL ) introduced Visual Intelligence with AI camera capabilities, but the applications are evolutionary and comparable to existing technologies, the investment firm said.

New Apple Watch and AirPods were introduced with health features, but nothing groundbreaking to drive significant sales growth, UBS said.

Apple's ( AAPL ) revenue is projected to grow by 1.8% in 2024, with a gross margin expansion to 46.1% and an EPS forecast of $6.69 for 2024, UBS analysts noted.

Despite no price hike for iPhone 16, Apple ( AAPL ) expects margin expansion through cost efficiencies and a favorable sales mix, the note said.

UBS maintained a neutral rating and $236 price target for Apple ( AAPL ).

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