Investing.com -- Bank of America analysts expect Apple (NASDAQ:AAPL) to report strong fiscal Q1 2025 results on January 30, driven by robust initial demand for the iPhone 16.
However, they anticipate a weaker guide for the March quarter due to lower iPhone shipments.
The bank projects iPhone sales for the March quarter to decline to 49 million units, down from their previous estimate of 56 million and below the Street consensus of 52 million.
Analysts attribute the weakness to macroeconomic headwinds and the staggered launch of Apple Intelligence features, which they say are “yet to gain widespread adoption.”
Looking further ahead, BofA lowered its iPhone sales forecasts for fiscal 2025 and 2026 to 229 million and 246 million units, respectively, down from prior estimates of 239 million and 257 million.
Despite this, the firm remains bullish on Apple’s resilience, reiterating its Buy rating and pointing to “margin resiliency, tailwinds to gross margin, and strong cash flow.”
China’s weak iPhone sales remain a concern, but BofA believes fears are overdone. The bank adds that Apple’s price cuts in China have made some iPhone models eligible for government subsidies, which could provide a boost.
The analysts also see regulatory challenges easing under the Trump administration.
BofA highlighted Apple’s upcoming launches, including the iPhone SE with an in-house 5G modem and the anticipated iPhone 17, as potential catalysts.
Following adjustments to iPhone estimates, BofA lowered its price target for Apple to $253 from $256, based on 30x its updated FY26 EPS forecast of $8.37.