Apple Faces Foldable Future with Uncertain Stock Prospects
Apple's stock price has been on a tear this year, up 18% YTD and reaching as high as $316.22 per share. But despite the company's strong performance, there are some headwinds to consider. The biggest one is memory cost inflation, which is putting pressure on Apple's margins.
To combat this, Apple has raised prices on its MacBooks and iPads. However, this may not be enough to offset the costs. Services revenue is also a concern, with App Store revenue down 1% YoY in August for the sixth straight month.
On the other hand, bulls are looking forward to two major events: the launch of Apple's foldable iPhone and the potential impact of AI on the company's future growth. Analysts at Citi forecast 5M units sold in H2 2026, with Popal predicting over $45B in revenue from the new device by the end of 2027.
Morgan Stanley estimates that the foldable iPhone will generate $14B in revenue alone in the December quarter. Meanwhile, Wedbush is projecting a price target of $400 per share, while Barclays sees it at $253. With such a wide range of predictions and opinions, investors are waiting to see how these events play out.