Apple Purchase Commitments Soar 28% as BofA Sees iPhone Ramp Ahead

Bank of America (BofA) has reiterated its Buy rating and $380 price target on Apple, citing a significant jump in manufacturing purchase commitments. The tech giant's purchase commitments rose 28% quarter-over-quarter to $57 billion in the fiscal third quarter, exceeding expectations.

This increase is attributed to Apple stockpiling components, including memory, to ensure supply and protect against higher prices, according to analyst Wamsi Mohan. As a result, BofA expects commitments to rise further into the fourth quarter ahead of the new iPhone launch.

Apple faces industry-wide supply shortages and cost inflation in advanced semiconductors, NAND, and DRAM, which may not be fully offset by pricing actions. The company has also warned that constrained access to compute could delay AI feature rollouts.