Bank of America removes Apple from top stock list and cuts iPhone forecast to 247 million units
The bank's iPhone estimate now sits 13 million units below Wall Street consensus and warns the market is underestimating memory cost impact on margins.
Bank of America has removed Apple from its U.S. 1 List and lowered its fiscal 2027 iPhone sales estimate by 9 million units to 247 million, compared to the Street consensus of 260 million units.
The bank warns that Wall Street is significantly underestimating the impact of rising memory prices on Apple's profit margins. BofA's fiscal 2027 iPhone forecast now sits 13 million units below consensus.
Memory inflation has affected the smartphone market broadly, with global smartphone processor shipments falling 21 percent year over year in Q3 according to Counterpoint. Rising memory costs pushed manufacturers to cut production of cheaper phone models.
The memory cost pressure has shifted market share among chip vendors. MediaTek's market share fell from 34 percent to 28 percent, while Qualcomm declined from 25 percent to 22 percent. Apple increased its processor share from 17 percent to 21 percent during the same period.
Source: 247wallst.com
