Morgan Stanley Predicts Record-Breaking Foldable iPhone Sales at Upcoming Apple Event

Morgan Stanley analysts expect Apple's autumn product launch event on September 9 to be one of the most significant in nearly a decade. The event, dubbed 'Surprise and Shine,' will mark a change for the company as new CEO Turnas takes center stage.

The analyst team led by Erik Woodring predicts that the event will introduce several new devices, including the Apple Watch Series 12, Apple Watch Ultra 4, AirPods 5, iPhone 18 Pro/Pro Max, and most importantly, Apple's first foldable iPhone. This marks a significant change in iPhone form, with analysts expecting the company to implement price hikes for same-configuration iPhones.

According to Morgan Stanley, Apple may ship around 6.5 million foldable iPhones in the December quarter, generating approximately $14 billion in revenue and accounting for 16% of total iPhone revenue. The analysts also note that a positive consumer response could lead to an even larger product category than currently forecast.

The price increase for the iPhone Pro series is expected to be between $200 and $500, with the starting price for the 512GB version of the foldable iPhone reaching $2,399 and the 2TB version priced at $3,199. Morgan Stanley expects Apple's memory costs to remain high, but believes that pricing measures will allow the company to maintain an iPhone gross margin of around 40%.