Foldable iPhone to Generate $14 Billion Revenue, But Price Hikes Loom

Apple's upcoming foldable iPhone could bring in a significant revenue boost, with Morgan Stanley predicting it will generate $14 billion in quarterly revenue. This is based on an expected 6.5 million units sold in the December quarter, which would account for 16% of iPhone revenue.

The device is expected to carry a high price point, with the 512GB version modeled at about $2,399 and a 2TB model reaching up to $3,199. This premium pricing could lift average selling prices and attract affluent users, making the foldable financially meaningful long before it becomes mainstream.

However, Apple faces higher memory costs due to increased demand for AI data-centre components, which may be passed on to customers in the form of price increases. KeyBanc Capital Markets warns that broad price hikes could trigger 'sticker shock' and hurt unit volumes, keeping an Underweight rating and a $250 price target.

Citi analyst Asiya Merchant is more optimistic, saying Apple's premium customer base, financing options, and access to components make it resilient through downturns. The foldable is seen as a halo product that can attract high-end users and strengthen the ecosystem, with IDC expecting Apple to ship over 17 million foldable iPhones by 2027 and capture 40% of the market.