Morgan Stanley Expects Apple's Foldable iPhone to Spark 'New Wave of Growth'
Morgan Stanley analysts believe Apple's upcoming 'Surprise and Shine' autumn product launch event on September 9 may be the company's most significant in nearly a decade. The analyst team, led by Erik Woodring, stated that this year's event will follow a similar format to recent years, with a 90-minute presentation introducing new devices including the Apple Watch Series 12, Apple Watch Ultra 4, AirPods 5, iPhone 18 Pro/Pro Max, and most importantly, the company's first foldable iPhone.
This launch will mark a significant change for Apple, as it will be the first time in 15 years that Tim Cook will not be the main figure at the event. Instead, new CEO Turnas will lead the company into this major product shift, officially unveiling the highly anticipated foldable iPhone.
The analysts also mentioned that Apple may implement its largest and most widespread price hike for same-configuration iPhones in the company's history. If the first foldable phone receives a positive response from consumers, it could contribute significantly to revenue in the December quarter, with Morgan Stanley expecting Apple to ship about 6.5 million foldable iPhones, corresponding to approximately $14 billion in revenue and accounting for 16% of total iPhone revenue for that quarter.
The analysts stated that 'Beyond the short-term financial contribution, it is worth noting how Apple will leverage the larger product form and whether it can offer experiences that are better on a foldable device, rather than just providing a larger screen, most importantly, what the hands-on experience of the device will actually feel like.' If consumer response is strong, they believe the eventual scale of this product category may exceed the levels currently suggested by the supply chain forecast.
Morgan Stanley also expects the price increase for the iPhone Pro series, at the same configuration, to be between $200 and $500. The firm expects the starting price for the 512GB version of the foldable iPhone to reach $2,399, while the 2TB version will be priced at $3,199.