BofA cuts Apple target after foldable iPhone Duo debut

Bank of America ↗ 0.21% lowered its price target on Apple ↗ 1.75% to $370 from $380 while maintaining a Buy rating, after new CEO John Ternus delivered his first major product launch event on September 9. The revision reflects softer-than-expected device pricing that could pressure margins, even as the bank raised its iPhone unit estimates on stronger anticipated demand.tradingview

The Ternus Era Begins

Ternus, Apple's longtime hardware chief who took over as CEO on September 1, used the event to unveil the foldable iPhone Duo — a book-style device with a 7.6-inch inner display that starts at $1,999. BofA analyst Wamsi Mohan called it Apple's most meaningful form-factor change in years, telling Bloomberg that the device expands Apple's addressable market by pulling new users and use cases into the ecosystem.bloomberg+1

The event also introduced upgraded iPhone 18 Pro models, new Apple Watches, and AirPods with improved processors, cameras, battery life, and health features.tradingview

Lower Prices, Higher Volume

The price target cut stems not from demand concerns but from economics. New iPhone pricing came in below BofA's expectations, which the bank said could drive higher sales volumes while squeezing gross margins as memory and component costs rise. BofA raised its iPhone unit estimates by 2 million devices for fiscal 2026 and 5 million for fiscal 2027, but cut its calendar 2027 earnings estimate to $9.98 per share from $10.32. The bank kept its 37-times earnings multiple, meaning the reduced target reflects lower profit expectations rather than weakening confidence in Apple's trajectory.tradingview

Innovation Meets Privacy

Mohan highlighted Apple's AI strategy as a differentiator. On-device processing handles as much computation as possible on Apple Silicon, while a system called Private Cloud Compute routes more demanding tasks to larger models without exposing user data. Ternus positioned the iPhone as an "intelligent personal hub," with Siri serving as a core interface capable of working across apps and personal context. BofA's message, Mohan said, is "continuity plus acceleration" — Tim Cook's era built the installed base and services revenue; the Ternus era is expected to embed AI more tightly into hardware, starting with foldables and extending to wearables and home products.macdailynews