Amid doubts about demand, Bank of America backs Apple (AAPL.US)! iPhone Duo pre-sale will be a crucial test

According to Zhihu Finance APP, Apple (AAPL.US) shares closed up 1.29% on Monday, pushing its market value close to $5 trillion, with prices continuing to edge higher during after-hours trading. Although investors are weighing the market response to the latest iPhone lineup amid rising prices and a staggered release, Bank of America has maintained a "Buy" rating on Apple and a target price of $370.

Bank of America pointed out that, at the same point in the current pre-sale cycle, delivery times for the iPhone 18 Pro and Pro Max are now shorter than they were last year, which has raised market concerns about demand for Apple's latest high-end smartphones. On October 9, media reports indicated that Apple had notified some suppliers to cut October iPhone 18 Pro and Pro Max component orders by 15%-20%. This move is believed to be related to weaker-than-expected demand. On that day, Apple's stock price fell by as much as 2.07% during trading hours, with its market value shrinking by about $103 billion compared to the previous day.

However, Bank of America said that Apple's supply chain is increasing production of the Pro Max and iPhone Duo, which are the higher-value models in the latest iPhone lineup. According to sources in Apple's supply chain, Apple has structurally adjusted its new phone order volumes for fall 2026: increased iPhone Duo orders by 30%, though the total still doesn't exceed 10 million units; cut iPhone 18 Pro orders by 10%-15%; and increased iPhone 18 Pro Max orders by 10%-15%, with the total order volume for the iPhone 18 Pro series unchanged. An Apple supply chain insider stated: "This means that sales are shifting toward higher-value products, which is overall positive for the performance of companies in Apple's supply chain."

Meanwhile, Bank of America stated that investors' attention is now likely to shift to the pre-sale of the iPhone Duo beginning later this week, describing this release as a key indicator for gauging demand for high-end devices. Apple began pre-sales for the iPhone 18 Pro and Pro Max on September 12, with official sales starting on September 18. Pre-sales for the iPhone Duo will begin on October 16, with retail sales starting on October 23.

In recent months, Apple's share price has risen sharply, reaching a record closing high of $345.34 on September 22. This rally has raised market expectations for Apple's upcoming product cycle and has made early demand indicators particularly important for investors. As a result, it's not hard to understand why reports about Apple asking suppliers to cut production of new Pro model components have sparked investor concerns—and why Bank of America is so focused on the demand shown by iPhone Duo pre-sales.

Additionally, Apple will hold its "Welcome Home" themed event on October 13 local time, focused on its smart home product line. According to the latest scoop from well-known journalist Mark Gurman, in addition to the highly anticipated smart home hub HomeView, the new Apple TV 4K and the new HomePod mini will also be unveiled at the event. The latter two products are expected to go on sale on October 30, while HomeView is expected to be available in mid-November. These devices are projected to feature stronger connectivity and further integration of Siri’s artificial intelligence (AI) capabilities.