Apple's Price Target Cut Amid iPhone Pricing Concerns

Bank of America analyst Wamsi Mohan cut Apple's price target to $370 after the company's latest iPhone event, despite remaining bullish on the stock. The new iPhone 18 Pro and Pro Max prices were lower than expected, starting at $1,199 and $1,299 respectively.

Mohan's reasoning was that while the new iPhones could be a hit, their prices would eat into Apple's already narrowing margins due to rising memory costs. The company has been trying to balance price increases with absorbing some of these higher costs, but this will weigh on its gross margins for the fourth quarter.

Gene Munster from Deepwater Asset Management thinks that up to one-third of Pro Max owners might switch to the new iPhone Duo, which starts at $1,999. If that happens, Duo sales could eventually help Apple's iPhone margins increase.