Bank of America lowers Apple stock price target following iPhone Duo launch
Following Apple's product event featuring the debut of its first foldable phone, Bank of America analyst Wamsi Mohan adjusted his price target for Apple (AAPL) from $380 to $370 while maintaining a 'Buy' rating. The decision was influenced by lower-than-expected pricing on new iPhone models and ongoing elevated component costs that are squeezing gross margins. Mohan highlighted the iPhone Duo as the standout product, praising its innovative foldable design with dual displays and potential for mainstream adoption. However, he noted that Apple's aggressive pricing strategy prioritizes unit volume over margin expansion, which has led to downward revisions in earnings estimates for 2027. Despite this, Mohan remains optimistic about long-term growth opportunities from the new product category. The iPhone 18 Pro and Pro Max models also received positive feedback but started at higher price points than anticipated. Apple's CEO John Ternus emphasized privacy-focused AI features during the event, aligning with company values while introducing a more accessible pricing model for broader consumer appeal.
Topics: AI Integration Apple Bank of America iPhone Duo Price Target Cut