Morgan Stanley Predicts Foldable iPhone Bonanza Worth Up to $14 Billion

Morgan Stanley predicts that Apple's upcoming foldable iPhone could contribute up to $14 billion in revenue for the December quarter, calling it one of the company's most consequential launches since the iPhone X.

The bank expects strong initial demand and limited supply, with 7 million to 8 million units produced in the second half of 2026 and up to 20 million over the first product cycle. Morgan Stanley sees the launch as a test of Apple's pricing power, with the largest like-for-like iPhone price increases in years.

Rising NAND and DRAM costs are expected to drive Pro models up more than $200 year-over-year, with the key upgrade on the iPhone 18 Pro being the move to TSMC's 2nm process for higher on-device AI performance. Apple appears focused on securing enough components rather than finding buyers, although memory supply may cap near-term builds.