02:38 PM EDT, 10/31/2025 (MT Newswires) -- Apple's ( AAPL ) fiscal Q4 revenue growth was held back by iPhone supply constraints, UBS said in a Thursday research report.

The supply limitations appear to have driven some iPhone sales into the December quarter as management guided for double-digit growth in fiscal Q1, the report said.

Robust iPhone demand and an expected 14% growth in the services segment in December imply total revenue growth of 10% to 12% for fiscal Q1, UBS said, adding that the uptick in the outlook coincides with a reduction of China tariffs to 10% from 20%, which has a "modest" impact on the outlook. Analysts said they expect the tariff reduction to provide a 20-basis-point boost to Apple's ( AAPL ) fiscal Q1 guidance.

The brokerage raised its fiscal 2026 and 2027 EPS estimates to $8.03 and $8.61, respectively, from $7.64 and $8.00. UBS also increased its revenue forecast for the fiscal years to $445.33 billion and $463.92 billion, respectively, according to the note.

The brokerage reiterated its neutral rating on the stock and raised its price target to $280 per share from $220.

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