Apple's High-End iPhone Models Outpacing Expectations, Gene Munster Says

Gene Munster, managing partner at Deepwater Asset Management, says estimates for Apple's iPhone 18 revenue are 'too conservative.' According to his tracking of lead times from eight countries, buyers may be opting for the more expensive iPhone models rather than waiting for the base model's release in spring 2027.

Munster tracks the lead times daily from countries including the United States, United Kingdom, China, Canada, Switzerland, France, Japan, and Germany. He notes that these iPhone models are seeing longer lead times of 15% compared to last year.

The investor expects strong demand for Apple's upcoming foldable Duo smartphone, which begins preorders on October 16 with deliveries on October 23. Munster estimates that the Duo will account for around 8% of iPhone units next year and 14% of iPhone revenue.

Consensus estimates for iPhone revenue in fiscal 2027 are $9.5 billion, according to Munster. He believes these estimates may be too low, stating 'I think the Street is still 10% too low on iPhone revenue for FY27.'