Apple Sees iPhone Sales Jump--but UBS Says It Won't Last

June 16 Apple AAPL is benefiting from stronger-than-expected iPhone demand in the early part of its June quarter, according to UBS.

Analyst David Vogt pointed to recent supply chain checks and data from Counterpoint Research, which suggest iPhone sell-through rose by mid-teens percentages year over year in April and May. Vogt attributed the surge in demand to concerns about potential price increases due to U.S. tariffs targeting Chinese and Southeast Asian exports.

On a quarter-to-date basis, UBS estimates iPhone unit sell-through is tracking about 4 million units above the same period last year. Despite the uptick, Vogt remains cautious and maintained a Neutral rating and $210 price target on the stock.

The firm does not view the recent demand as sustainable, noting the muted consumer response following Apple's Worldwide Developers Conference. UBS's Evidence Lab also flagged softening purchase intent among consumers heading into the second half of the year.