SDVY

Apple Inc. (NASDAQ:AAPL) remains focused on expanding its premium device lineup and longer-term AI opportunity as investors track early demand for the iPhone Duo and availability across its latest iPhone models. On Monday, Bank of America analyst Wamsi Mohan reiterated his Buy rating on Apple, maintaining a $370 price target.

iPhone Duo Faces Extended Delivery Delays

Apple’s iPhone Duo remains difficult to obtain more than a week after its launch, with global delivery wait times averaging 79 days and shipments extending into January 2027.

Wamsi Mohan said the global average delivery lead time for the iPhone Duo stood at 79 days as of Oct. 26, highlighting persistent supply constraints for the device. In contrast, delivery times for the iPhone 18 Pro fell to four days from eight days a week earlier, while those for the iPhone 18 Pro Max remained unchanged at 15 days.

The findings suggest diverging availability trends across Apple’s latest iPhone lineup, with the Duo remaining difficult to obtain while supply of the standard Pro model continues to normalize.

U.S. Carrier and Global Shipping Trends

In the United States, average iPhone Duo delivery times through wireless carriers increased to 57 days from 50 days the previous week. However, carrier availability remained better than Apple’s own website, where average delivery times stood at 91 days across storage configurations and colors.

The increase in carrier delivery times “could reflect shifting inventory allocations,” BofA said.

Internationally, estimated iPhone Duo shipments remained scheduled for Jan. 22, 2027, equivalent to an 88-day lead time. The apparent decline from 95 days a week earlier reflected the passage of time rather than an improvement in expected delivery dates.

iPhone 18 Pro Supply Improves Across Markets

BofA’s tracking also showed that the iPhone 18 Pro’s global delivery time had fallen by 10 days since the first week of monitoring, compared with a three-day reduction for the Pro Max.

The latest figures point to improving supply conditions for the iPhone 18 Pro, while availability of the higher-end Pro Max remains relatively constrained.

China recorded the sharpest improvement in iPhone 18 Pro availability, with delivery times declining to just one day from four days a week earlier, the shortest among the markets tracked by BofA.

Outside China, international lead times for the Pro averaged four days, down from 11 days the previous week. Meanwhile, China’s iPhone 18 Pro Max delivery time remained at 15 days, according to the report.

In-Store Availability Highlights Supply Gaps

In-store availability reflected a similar pattern. Although pickup options for the iPhone Duo resumed Saturday, Oct. 24, BofA found no stores offering available pickup slots in its latest snapshot, pointing to continued limited inventory.

By comparison, in-store availability of the iPhone 18 Pro appeared healthy, while the Pro Max remained comparatively difficult to obtain.

Apple’s AI and Upgrade Cycle Support Bullish Outlook

Mohan’s bullish outlook rests on expectations for a multiyear iPhone upgrade cycle, growing services revenue, higher margins from internally developed chips and continued shareholder returns.

The analyst also sees Apple benefiting from artificial intelligence features that could encourage consumers to upgrade to newer hardware, alongside opportunities to expand into new products and markets.

BofA’s $370 Price Target and Earnings Forecast

BofA’s $370 price target is based on 37 times its estimated calendar 2027 earnings per share of $9.98, a valuation premium the firm believes is justified by Apple’s potential in agentic AI and its longer-term upgrade opportunities.

The brokerage expects Apple’s earnings per share to rise to $9.46 in fiscal 2027 from an estimated $8.85 in fiscal 2026, before increasing to $10.91 in fiscal 2028.

Key Risks and Long-Term Growth Prospects

However, BofA flagged several risks to its outlook, including weaker consumer spending, longer smartphone replacement cycles, slower services growth, challenges in executing Apple’s AI strategy and potential trade conflicts or tariffs.

The latest shipping data underscores the uneven availability of Apple’s newest smartphones, though delivery times alone do not establish the extent of consumer demand.

For now, BofA remains positive on Apple’s longer-term prospects, citing its capital returns, AI opportunities and potential to benefit from new products and markets.

AAPL Price Action: Apple shares were down 1.08% at $343.90 at the time of publication on Monday. The stock is trading near its 52-week high of $348.36, according to Benzinga Pro data.

Photo courtesy of Apple