Morgan Stanley Sees $14 Billion Foldable iPhone Opportunity for Apple

Apple is gearing up for its biggest iPhone test in years as Morgan Stanley predicts that the tech giant will unveil its first foldable iPhone alongside other new devices on September 9. The event, which marks a leadership change with John Ternus leading the presentation, is expected to feature several new products, including the iPhone 18 Pro and Pro Max, Apple Watch Series 12, Apple Watch Ultra 4, and AirPods 5.

Morgan Stanley analyst Erik Woodring believes that the foldable iPhone could become a crucial revenue driver if buyers respond positively. The firm estimates that around 6.5 million units could ship during the December quarter, generating approximately $14 billion in revenue, which accounts for about 16% of quarterly iPhone sales.

The pricing of the new devices may also be a key factor to watch, with Morgan Stanley expecting Pro models to cost between $200 to $500 more than their predecessors. A 512GB foldable model could start at $2,399, while the 2TB version might reach $3,199.

By using higher prices to offset increasing memory costs, Apple aims to maintain its iPhone gross margins near 40%. However, a strong foldable launch may not necessarily translate to consumer demand, as some investors may be hesitant to pay premium prices for the new devices.