Bank of America says John Ternus’ first major product launch as Apple CEO reinforced the company’s bet on hardware innovation, privacy, and more personalized, privacy-focused artificial intelligence.

Wamsi Mohan, Bank of America’s managing director and senior equity research analyst covering Apple, told Bloomberg Tech host Ed Ludlow that the new foldable iPhone Duo expands Apple’s addressable market. The book-style device, unveiled at Ternus’s debut event, opens to a 7.6-inch inner display from a 5.4-inch cover screen and starts at $1,999. Mohan framed it as more than a form-factor change: a way to pull new users and use cases into Apple’s ecosystem while keeping the iPhone at the center of the company’s strategy.

On AI, Mohan pointed to Apple’s split architecture. On-device processing handles as much as possible on Apple Silicon. When more compute is needed, Private Cloud Compute is designed to run larger models without sacrificing user privacy. That combination, he said, could make Siri more capable (able to work across apps and personal context) without the data-collection trade-offs seen in rivals’s offerings. Ternus used the launch to pitch the iPhone as an “intelligent personal hub,” with Siri positioned as a core interface rather than a bolt-on chatbot.

The message from BofA is continuity plus acceleration. Tim Cook’s era was iterative, built a vast installed base, services revenue, and supply-chain scale. Ternus, the longtime hardware chief who took over September 1st, is expected to keep that machine running while pushing devices that embed AI more tightly — foldables now, and later categories such as smarter wearables and home products. Mohan has maintained a Buy rating, arguing Apple can cement device dominance if silicon, privacy, operating systems, and personal context stay tightly integrated.
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MacDailyNews Take: We’re not the only ones who are already loving John Ternus’ Apple!

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Bank of America expects Apple to surpass Wall Street expectations when it reports fiscal third-quarter results on July 30, marking Tim Cook’s final earnings call as CEO.

In a note released Monday, BofA analyst Wamsi Mohan maintained a Buy rating on the stock and a $380 price target. The firm is modeling revenue of $109 billion and earnings per share (EPS) of $1.89, comfortably ahead of consensus estimates of $108 billion in revenue and $1.87 in EPS. That would represent approximately 16% year-over-year revenue growth, exceeding Apple’s own guidance range of 14-17%.

Investor attention heading into the report is likely to focus on three key areas: component cost inflation, the durability of gross margins, and the implications of Cook’s departure from the CEO role.

BofA noted that product gross margins are expected to decline sequentially in both the June and September quarters due to the staggered launch schedule of the next iPhone lineup. Pro, Pro Max, and Fold models are slated for September, while the base model and Air are not expected until March. The firm views the near-term margin pressure as “transitory,” forecasting a rebound to 38.5% in the December quarter as the new devices launch at higher prices.

On the services side, BofA projects 14% year-over-year growth in the third quarter. While App Store revenue growth has slowed to 3.2% from 9.8% in the previous quarter, the firm anticipates strength in iCloud and Licensing to more than offset the slowdown.

MacDailyNews Note: Looking further ahead, the bank adopted a more cautious stance for the second half of calendar 2026. It modeled fourth-quarter revenue at $106 billion and EPS at $1.88, below Street forecasts of $114 billion and $2.01, citing potential volatility from the new split iPhone launch cadence.

Despite the tempered longer-term outlook, BofA’s overall message remains positive, reinforcing confidence in Apple’s ability to deliver a solid beat in the upcoming report.

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