Foldable iPhone Duo Sparks Debate Over Apple's Future Prospects

Apple's 'Surprise and Shine' event marked a significant milestone for the company as it unveiled its first foldable iPhone, the Duo, priced at $1,999. Analysts offered mixed reactions to the new device, with some expressing optimism about Apple's future prospects while others sounded cautionary notes.

Citi analysts were bullish on Apple, maintaining a Buy rating and a price target of $365 on the stock. They hailed the Duo as 'the biggest new hardware category' since the Apple Watch and AirPods, highlighting its potential to drive sales growth. The company's decision to pair the foldable iPhone with premium devices such as the iPhone 18 Pro and Pro Max is also seen as a strategic move to increase average selling prices.

Goldman Sachs analysts were equally positive, citing the price increases on the Pro models and a new 2-terabyte storage tier as factors that will support Apple's sales growth. They maintained a Buy rating on the stock.

However, not all analysts shared this optimism. Oppenheimer analysts reiterated a Perform rating on Apple, acknowledging that the Duo is likely to be a hit but cautioning that supply constraints could limit its availability to 8-10 million units this year.