Bank of America Reaffirms Buy Rating for Apple Ahead of Earnings
Two days before its highly anticipated Q3 earnings call in July 2026, Bank of America analyst Wamsi Mohan reaffirmed his 'Buy' rating and $380 price target for Apple stock. The firm highlighted the launch of Apple Upgrade, a new leasing program that allows customers to lease iPhones, Apple Watches, Macs, or iPads over terms ranging from 12 to 36 months. Mohan emphasized how this shift could fundamentally change Apple’s revenue model by capturing residual value more consistently through returned devices. Unlike traditional ownership models where Apple only recovers the device if a customer chooses to trade it in, Apple Upgrade ensures that all leased products return to the company at the end of their terms for refurbishing or resale. The analyst calculated lease economics using an iPhone 17 Pro example and noted that while current residual values are slightly below what Apple pays for returned devices today, there is potential for improved profitability over time. The program replaces older financing options like the iPhone Upgrade Program.
Topics: Apple Bank of America Earnings Call Product Launch Stock Analysis