tae kim(@firstadopter):BofA slashes Apple iPhone sales estimate and says Wall Street models for gross margin are WAY too high due to higher memory prices "We lower our F27 iPhone est. by 9mn units to 247mn (vs. St at 260mn)." "We see a gross 900bps impact from memory on iPhone GMs which is netted down to a negative impact of 500bps based on price, mix, and cost actions. We estimate about 250bps negative impact on total company GM. Sep quarter GM guide is 47-48% which includes 100bps of positive impact from tariff refunds. Assuming a Sep base GM of 46.5% (ex tariff impact), by the Mar qtr, we would estimate total company GM to be 43.6-44.6%, much lower than current St. ests (47.7%)."

2026.10.30 09:57

BofA slashes Apple iPhone sales estimate and says Wall Street models for gross margin are WAY too high due to higher memory prices "We lower our F27 iPhone est. by 9mn units to 247mn (vs. St at 260mn)." "We see a gross 900bps impact from memory on iPhone GMs which is netted down to a negative impact of 500bps based on price, mix, and cost actions. We estimate about 250bps negative impact on total company GM. Sep quarter GM guide is 47-48% which includes 100bps of positive impact from tariff refunds. Assuming a Sep base GM of 46.5% (ex tariff impact), by the Mar qtr, we would estimate total company GM to be 43.6-44.6%, much lower than current St. ests (47.7%)."