Bernstein kept its Outperform rating and $370 price target on Apple but warned that surging DRAM and NAND prices could compress margins and earnings during the December quarter. The firm cut its fiscal first-quarter EPS estimate to $2.87 from $3.00, 2% below the $2.92 consensus. Bernstein forecasts iPhone gross margin of 40.4%, or 390 basis points below consensus, and company-wide gross margin of 46.2%, 50 basis points below expectations. DRAM and NAND account for about 90% of the estimated $168 annual cost increase for the 256GB iPhone 18 Pro Max. Higher international pricing provides some offset, while premium models are expected to represent 70% of unit sales, although demand remains concentrated in the lower-margin 256GB configuration. Apple shares rose 0.49% to $337.56 on Friday. Portland Investment Counsel established a $2.18 million position during the second quarter, while institutional investors hold 67.73% of the company. Wall Street remains divided, with MarketBeat showing a Moderate Buy consensus and a $340.14 average price target. Apple also reported $2.02 in quarterly EPS and $109.42 billion in revenue on July 30, and extended its worldwide patent licensing arrangement with Qualcomm from April 1, 2027. Bernstein continues to view Apple as the gateway to consumer AI.