Morgan Stanley and BofA Diverge: Apple Price Target Revamped as Foldable iPhone and MacBook Neo Sales Shake Up 2026 Forecasts
USA NEWS NOW: While a recent Morgan Stanley survey pointed to a record-breaking “supercycle” for the iPhone, other Wall Street titans are taking a more surgical approach to Apple’s valuation. In a research note released this morning, Bank of America (BofA) revamped its price target for Apple (AAPL), weighing the explosive success of the new MacBook Neo against a “staggered” rollout plan for the highly anticipated foldable iPhone.
Despite Apple stock underperforming the S&P 500 by approximately 7% year-to-date, analysts are uncovering a complex web of supply chain shifts and consumer enthusiasm that could define the tech giant’s trajectory through 2028.
The Foldable iPhone: A 2026 Power Move
The most significant update comes from BofA analyst Wamsi Mohan, whose team recently returned from consultations with Asian supply chain sources. The verdict? Apple is finally ready to enter the foldable market in 2026.
According to the report, the first foldable iPhone is expected to feature:
- A massive 7.7″ to 7.8″ inner screen when unfolded.
- Ultra-thin design, measuring under 10mm in thickness when closed.
- Aggressive production targets, with the supply chain preparing for a launch volume of 10 million to 20 million units.
However, there is a catch. Mohan notes that while the Pro and Pro Max foldable models are slated for a traditional September 2026 launch, the Base, Air, and “e” models will likely be delayed until the first half of 2027. This “staggered” launch is expected to shift revenue from the lucrative December quarter into March, leading BofA to slightly lower its 12-month price target from $325 to $320.
MacBook Neo: The $599 Game-Changer
While the foldable iPhone remains the “long-game” play, Apple is currently seeing an unprecedented surge in its laptop division. The MacBook Neo, launched on March 4 with a disruptive $599 price tag, has officially sold out across all eight online configurations until at least next month.
Apple CEO Tim Cook took to X (formerly Twitter) on March 20 to celebrate the milestone:
“Mac just had its best launch week ever for first-time Mac customers. We love seeing the enthusiasm!”
Despite the consumer frenzy, Wall Street remains cautious. Rosenblatt reiterated a Neutral rating, citing concerns that the MacBook Neo’s lower price point will lead to thinner gross margins. However, proponents of the device argue that the “halo effect”—bringing in record numbers of first-time Mac users—will pay off in long-term service revenue.
The Forecast: 2026–2028 EPS Estimates
Due to the shifting seasonality of the iPhone rollout, BofA has adjusted its Earnings Per Share (EPS) estimates:
| Fiscal Year | New EPS Estimate | Previous Estimate |
|---|---|---|
| 2026 | $8.36 | $8.51 |
| 2027 | $9.53 | $9.77 |
| 2028 | $10.64 | $10.86 |
Upside vs. Downside: The Battle for the Multiple
Bank of America maintains a Buy rating, citing several “Upside” catalysts that could propel the stock past its $320 target:
- Pro Model Dominance: Stronger sales of high-margin Pro iPhones.
- AI Turnaround: Potential breakthroughs in AR/VR and generative AI services.
- Recovery: Faster than expected growth in emerging markets.
Conversely, the team warned of “Downside” risks, including an antitrust lawsuit, potential trade conflicts/tariffs, and a stronger dollar impacting international sales.
Frequently Asked Questions (FAQs)
Q: Why did BofA lower the price target if the foldable iPhone is coming?
A: The target was lowered slightly (from $325 to $320) not because of a lack of demand, but because of the “staggered” release. By pushing the cheaper models into 2027, Apple’s 2026 revenue and unit numbers may appear lower than previously estimated by the consensus.
Q: When can I buy the MacBook Neo?
A: Currently, it is sold out online until late April or May 2026. However, some brick-and-mortar Apple Stores may receive limited restocks.
Q: How does this compare to the Morgan Stanley survey?
A: Morgan Stanley focused on “upgrade intent,” which is at record highs. BofA is focusing on the “supply chain reality.” Both suggest strong demand, but BofA is being more conservative regarding when that demand will hit the balance sheet.
Reference Links & Further Reading
- TheStreet: Apple stock price swing with $143B record
- 9to5Mac: MacBook Neo Sold Out Online Until Next Month
- Yahoo Finance: AAPL Stock Performance vs S&P 500
