Foldable iPhone Could Boost Apple Revenue by $14 Billion

Morgan Stanley analysts expect Apple's first foldable iPhone to contribute $14 billion in revenue during its December quarter. The device is anticipated to be a major product launch, described as the biggest iPhone form-factor change since 2017. Analyst Erik Woodring noted that this event will be the company's most consequential since the iPhone X.

Woodring predicted strong early demand for the foldable iPhone, but warned of tight supply, with 7-8 million units built in the second half of 2026 and up to 20 million over the first product cycle. Shipments are expected to begin in October or early November.

Morgan Stanley also expects Apple's pricing power to be tested by the launch, as NAND and DRAM costs rise. This may push Pro models more than $200 higher year-over-year. The key upgrade on the iPhone 18 Pro is likely TSMC's 2-nanometer process, aimed at stronger on-device AI performance.

The analyst kept an Overweight rating and a price target of $360 for Apple stock, noting that it often outperforms into launch events but can fade on the day itself. Sustained gains will depend on later estimate revisions.