Apple faces margin headwinds as rising memory costs and conservative iPhone 18 Pro pricing prompt a price target cut from Bank of America, though analysts remain bullish on long-term growth.
Bank of America cut Apple's price target to $370 but reiterated a buy rating after iPhone 18 Pro pricing came in below expectations, while gross margins are guided lower to 47%-48% due to rising memory costs.
Bank of America analyst Wamsi Mohan lowered Apple's price target to $370 from $380 following the iPhone 18 Pro launch. While the firm maintains a buy rating, lower-than-expected pricing on new models combined with rising memory costs has led to a downward revision in gross margin guidance to 47%-48%.
The reduction to $370 reflects concerns over lower-than-anticipated pricing for the iPhone 18 Pro series, which may fail to fully offset rising memory costs, thereby pressuring gross margins.