Foldable iPhone Launch Sparks Sell-the-News Fears on Wall Street
Apple's highly anticipated foldable iPhone is expected to generate $14 billion in quarterly revenue when it launches, but Wall Street remains cautious about a potential sell-the-news event. Morgan Stanley estimates that Apple will ship around 6.5 million units of the device in the December quarter, with prices reaching as high as $3,199 for the 2TB model. This is seen as a significant opportunity for Apple to boost its revenue without relying on mass adoption, thanks to premium pricing that can lift average selling prices and attract affluent users.
However, the launch may also bring sticker shock, with initial demand potentially exceeding supply due to higher memory costs driven by AI data-centre demand. This could lead to a negative reaction from investors if prices surprise on the upside but demand expectations do not. Morgan Stanley's Erik Woodring described the foldable as 'the biggest iPhone form-factor change since iPhone X.'
Analysts expect Apple's customers to be resilient in absorbing higher prices, thanks to financing options and access to components. Citi analyst Asiya Merchant noted that Apple should remain one of the most resilient vendors through the downturn, citing its premium customer base and ecosystem strength.