Apple Inc (NASDAQ:AAPL, XETRA:APC) remains well positioned to manage increasing memory costs and potential product price increases due to its scale and supplier relationships, according to Bank of America analysts, who maintained a ‘Buy’ rating and a $380 price target on the stock.
This followed comments from Apple CEO Tim Cook in an interview with The Wall Street Journal, in which he indicated the company would need to raise prices to offset escalating memory expenses.
Bank of America analysts wrote that they had already expected Apple to increase prices and had previously incorporated an approximately $100 price increase into their forecasts.
Following Cook's remarks and continued strength in memory pricing, the firm raised its assumptions by an additional $100 for the Pro and Pro Max iPhone models while leaving estimates for the base model and iPad Air unchanged.
The analysts wrote that the pricing strategy could allow Apple to pursue market share gains in lower-priced segments while charging more in higher-end categories, where demand tends to be less sensitive to price changes.
Bank of America also expects Apple to raise prices for Macs and iPads, leading it to slightly reduce its unit shipment forecasts across product categories.
The firm estimates the higher component costs could create an additional 100-basis-point headwind for product gross margins, although stable services margins and efficiencies elsewhere in the supply chain could help offset some of the pressure.
The analysts wrote that Apple's longstanding relationships with memory suppliers, combined with its scale and strong balance sheet, provide advantages in securing long-term component supply. They added that Apple is likely to continue growing shipments at a faster pace than the broader smartphone and personal computer markets.
Bank of America modestly adjusted its fiscal 2026 estimates, forecasting revenue of $469.8 billion and earnings per share of $8.63, compared with prior estimates of $468.7 billion and $8.61, respectively.
The firm left its price objective unchanged at $380, based on 37 times its calendar 2027 earnings estimate of $10.27 per share. Shares traded hands at $298 on Thursday afternoon.