Apple's New iPhone Prices Lower than Expected, BofA Says
Apple's (AAPL) new iPhone prices are lower than expected, which could boost sales but also put pressure on gross margins due to higher memory and component costs, BofA Securities analysts said in a Wednesday note.Analysts said that the new iPhones will allow artificial intelligence models to run on-device, while using Private Cloud Compute for more complex requests, with Siri AI set to become more capable and personalized over time.BofA said the iPhone Duo opens up a larger total addressable market for Apple, with the foldable screen enabling iPad-like productivity.Analysts raised their iPhone unit expectations for fiscal 2026 and fiscal 2027 by 2 million and 5 million units, respectively.BofA reiterated its buy rating on Apple but lowered its price target to $370 from $380.Price: $320.62, Change: $+5.28, Percent Change: +1.67%