Morgan Stanley Sees Foldable iPhone as $14B Revenue Opportunity

Morgan Stanley believes Apple's upcoming foldable iPhone could generate around $14 billion in revenue for the company during its December quarter. This is a significant opportunity, as it marks one of the biggest changes to the iPhone form factor since the introduction of the iPhone X.

The bank's analyst, Erik Woodring, notes that the launch will be a critical test of Apple's pricing power. With strong initial demand and constrained supply expected, Morgan Stanley predicts 7-8 million builds in the second half of 2026 and up to 20 million over the first product cycle.

The bank also expects like-for-like iPhone price increases to be significant, with Pro models potentially rising by more than $200 year-over-year. This is largely due to increasing NAND and DRAM costs, which will drive prices up for high-end devices.

Woodring notes that Apple appears focused on securing enough components rather than finding enough buyers, but memory supply may cap near-term builds. The launch event will be led by new CEO John Ternus, marking a significant change from the past 15 years when Tim Cook would headline such events.