BofA cuts iPhone estimate by 9M units, says Wall Street gross margin models way too high on memory prices
firstadopter · x · 2026-10-30
BofA slashes Apple estimates, citing memory price inflation: F27 iPhone units cut by 9M to 247M (vs Street 260M); memory hits iPhone gross margin 900bps, netting to 500bps after price/mix/cost actions and 250bps at company level. Ex-tariff-refund base GM of 46.5% in Sep quarter falls to an estimated 43.6–44.6% by March — far below the Street's 47.7%.
More from Venture
- Startup Growth Playbook Collection: First 100 Users, SEO, Reddit and Viral Launches — sahilypatel · 2026-10-30
- Zurich AI roundup: Enact raises $30M, microagi claims $100M ARR in 6 months, Apple expands — giffmana · 2026-10-30
- SaaS acquisition logic rewritten by AI: SEO traffic dies but brands and influencers win — tibo_maker · 2026-10-30
- Sharp Tech Goes Video: Anthropic's S-1, Meta and Muse, and Brewers — Stratechery · 2026-10-30
- a16z Podcast: Eve CEO Says AI Can Lift Law Firms From 100 to 500 Clients per Attorney — a16z Podcast · 2026-10-30
- Hard Fork: Anthropic's S-1 Reveals AI Boom Economics Ahead of Record-Setting IPO — Hard Fork (NYT) · 2026-10-30