Apple Inc. Pricing Is The Next Lever Adjusting Estimates

BofA Research reiterates a Buy rating on Apple, raising price estimates to account for planned price increases on high-end models designed to offset rising memory costs.

Key Takeaways

• 1.Apple is raising prices on Pro and Pro-Max models by an additional $100 to offset escalating memory costs.
• 2.F26E revenue and EPS estimates were slightly increased to $469.8bn and $8.63, respectively.
• 3.The Price Objective (PO) for Apple remains at $380, supported by expected strong iPhone upgrade cycles driven by Gen AI features.

Table of Contents

• Apple to adjust pricing of products to offset memory costs
• Pricing across all products; some unit and margin impact
• Relatively well positioned from a supply standpoint
• Adjusting estimates; PO stays at $380
• Model
• Abbreviations
• Price objective basis & risk
• Analyst Certification
• Important Disclosures

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