Amid demand doubts, Bank of America stands by Apple Inc. (AAPL.US)! iPhone Duo pre-orders will be a key test.

Apple Inc. (AAPL.US) shares closed up 1.29% on Monday, pushing its market capitalization close to $5 trillion, and continued to edge higher in overnight trading. Although investors are weighing the market reception of the latest iPhone lineup amid price increases and a staggered release, Bank of America Corp. maintained its "Buy" rating on Apple Inc. and a $370 price target. Bank of America noted that at the same stage of the current pre-order cycle, delivery times for the iPhone 18 Pro and Pro Max are shorter than last year, which has sparked market concerns about demand for Apple Inc.'s latest high-end smartphones. On October 9, media reports said Apple Inc. had notified some suppliers to cut component orders for the iPhone 18 Pro and Pro Max in October by 15%-20%. The move was seen as related to weaker-than-expected demand. That day, Apple Inc. shares fell as much as 2.07% intraday, wiping out about $103 billion in market value from the previous day. However, Bank of America said Apple Inc.'s supply chain is increasing production of the Pro Max and iPhone Duo, the two higher-value models in the latest iPhone lineup. Apple Inc.'s supply chain previously said Apple Inc. made structural adjustments to its fall 2026 phone new-product orders: increasing orders for the iPhone Duo by 30%, though the total remained below 10 million units; cutting orders for the iPhone 18 Pro by 10%-15%, while raising orders for the iPhone 18 Pro Max by 10%-15%, with the total order volume for the iPhone 18 Pro series unchanged. A person in Apple Inc.'s supply chain said: "This means sales are shifting toward higher-value products, so it is overall positive for the performance of Apple Inc.'s supply chain companies." Meanwhile, Bank of America said investor attention is now likely to shift to iPhone Duo pre-orders, which begin later this week, and said the launch will be an important gauge of demand for high-end devices. Apple Inc. opened pre-orders for the iPhone 18 Pro and Pro Max on September 12 and officially began sales on September 18. Apple Inc. will open iPhone Duo pre-orders on October 16, with retail sales starting on October 23. In recent months, Apple Inc. shares have risen sharply and hit a record closing high of $345.34 on September 22. The rally has raised market expectations for Apple Inc.'s upcoming product cycle and made early demand indicators especially important for investors. Therefore, it is not hard to explain why news that Apple Inc. asked suppliers to reduce component output for the new Pro models sparked investor concerns, and it also confirms why Bank of America is so focused on the demand conditions that iPhone Duo pre-orders will reveal. In addition, Apple Inc. will hold a "Welcome Home" event on October 13 local time, focusing on its smart home product line. According to the latest revelations from well-known journalist Mark Gurman, the product lineup at the event will include the much-anticipated smart home hub HomeView, as well as a new Apple TV 4K and a new HomePod mini. The latter two products are expected to go on sale on October 30, while HomeView is expected to launch in mid-November. These devices are expected to have stronger connectivity and further integrate Siri's artificial intelligence (AI) features.