Morgan Stanley Sees $14B Foldable iPhone Bonanza Ahead of Apple Launch

Morgan Stanley analysts believe that Apple's upcoming foldable iPhone could generate around $14 billion in revenue for the company by the end of the year. This estimate comes ahead of next week's launch event, which is expected to be one of the most significant since the introduction of the iPhone X.

The bank's analysts predict strong initial demand and constrained supply, with 7-8 million units produced in the second half of this year and up to 20 million over the first product cycle. They also expect the largest like-for-like price increases for iPhones in years, driven by rising NAND and DRAM costs.

The analysts frame the launch as a critical test of Apple's pricing power, particularly with regards to the Pro models, which are expected to see price hikes of over $200 year-over-year. The key upgrade on the iPhone 18 Pro is likely to be the move to TSMC's 2nm process for higher on-device AI performance.

Morgan Stanley analysts also note that Apple appears focused on securing enough components rather than finding enough buyers, although memory supply may cap near-term builds.