Apple's Foldable Future: Expensive iPhones on the Horizon

Apple's 'Surprise and Shine' event on Wednesday is expected to unveil several new iPhone models, including a foldable device.

Bank of America analyst Wamsi Mohan predicts three new phones will be showcased, with all three being quite expensive. Mohan expects the iPhone 18 Pro and Pro Max to carry price increases of $150 to $200 due to higher memory and storage chip costs.

The foldable device is expected to be priced at $2,099 for its base configuration, making it the most expensive iPhone Apple has ever sold. This will be a significant departure from previous models, with Mohan noting that investors' attention should focus on three key aspects: the foldable phone, price increases across the Pro line, and the decision to delay cheaper models until next spring.

Bank of America maintains its Buy rating and $380 price objective for Apple stock ahead of the event. This implies 18.8% upside from a reference price of $319.97. However, history suggests that Apple shares may slip modestly after launch events before recovering over the following 30 to 60 days.