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Chinese Renaissance cuts Apple to Hold, citing services slowdown and memory costs
The firm lowered its Apple price target to $280 from $329, citing muted 4QFY26 services growth implied by the company’s guidance and elevated memory expenses.
Beijing-based investment firm Chinese Renaissance downgraded Apple shares to a Hold from a Buy, arguing revenue growth projections are muted by a slowdown in the Services business and elevated memory costs, according to a note cited by Yahoo Finance.
In the downgrade, analyst Jack Zhou reduced the price target to $280 from $329. The firm estimated that Apple’s 4QFY26 top-line guidance implies roughly 10% growth in Services, down from 3QFY26, and pointed to weaker-than-expected mobile gaming, pressure from changes to the App Store business model, regulatory developments, and sluggish content offerings.
Chinese Renaissance said it remains constructive about the iOS ecosystem, but warned that the Services slowdown would further reduce Services’ ability to offset memory-driven pressure on Apple’s hardware margins. The firm also said the high memory costs would not be fully offset by a “steady” rise in Services.
The article also noted Apple’s recent quarterly results as context, including Q3 2026 revenue growth of 16% year over year to $109.4 billion, led by iPhone revenue up 21.7% to $54.3 billion, and Services revenues rising 12.1% to $30.7 billion. It added that Apple’s gross margin crossed 50% in the quarter, up from 46.5% a year earlier, and that earnings rose to $2.02 per share from $1.57 a year earlier.