Apple's strong iPhone and Mac sales overshadowed by supply and margin concerns

LSEG data shows at least five brokerages cut their price targets after the Q3 results, while three raised them.

Focus on whether pricing can protect margins

• TD Cowen ("Buy"; PT: $400) says higher prices for iPads, Macs and future iPhones, along with next-generation chips, could help offset near-term supply and cost pressures.
• Jefferies ("Hold"; PT: $285.56) says it expects rising memory costs to pressure gross margin further over the next two quarters.
• "We view pricing increases as a net positive for Apple, given that demand for its products is relatively inelastic" — Jefferies.
• DA Davidson ("Neutral"; PT: $270) says the iPhone cycle and Mac momentum remained intact, but management's warning that product constraints could worsen tempers the near-term setup.

Apple AAPL.O forecast slower-than-expected sales growth for the September quarter, citing persistent parts shortages that have hampered its ability to meet demand.

Its shares are down 7.6% premarket.