Apple's Foldable iPhone Could Generate $14 Billion in Revenue, But at What Cost?

Apple is on the cusp of unveiling its first foldable iPhone, which could generate $14 billion in quarterly revenue. Morgan Stanley expects Apple to ship around 6.5 million units in the December quarter, with a price tag that could reach as high as $2,399 for the 512GB version.

The device is expected to carry a high price due to increased memory costs, which have risen due to AI data-centre demand. This has forced smartphone makers to choose between absorbing higher component costs or passing them on to customers.

KeyBanc Capital Markets warns that broad price increases could trigger 'sticker shock' and hurt unit volumes, keeping an Underweight rating and a $250 price target for Apple shares.

Morgan Stanley analyst Erik Woodring called the foldable 'the biggest iPhone form-factor change since iPhone X', expecting Apple to build 7 million to 8 million units in the second half of 2026 and as many as 20 million over the first product cycle.