Apple's Foldable iPhone Could Send Shares Soaring, Analyst Predicts
Apple's entry into the foldable phone market could significantly boost its shares, according to Timm Schulze-Melander, an analyst at Rothschild & Co. Schulze-Melander upgraded Apple from Neutral to Buy and raised his price target to $400 from $260, citing the company's strong product roadmap and potential for higher iPhone average selling prices (ASPs).
The analyst predicts that Apple's venture into ultra-premium foldable handsets could increase ASPs by 11% by June 2027. He also anticipates sales of 14 million iPhone Ultra foldable handset units in FY27, with a minimal impact from cannibalization of sales from traditional iPhones.
Schulze-Melander's forecast is based on Apple's ability to cater to an ultra-premium segment of the handset market, which aligns with the company's brand positioning. Despite a recent 8% drop, Apple shares have seen a 13% increase year-to-date.