Morgan Stanley Sees Foldable iPhone as Potential $14B Opportunity

Morgan Stanley is predicting that Apple's first foldable iPhone will be a significant revenue contributor for the company, potentially reaching $14 billion in the December quarter. This would make it one of Apple's most consequential launches since the iPhone X.

The bank expects strong initial demand and supply constraints, with between 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 also notes that this launch will be a critical test of Apple's pricing power, with the largest like-for-like iPhone price increases in years.

The bank expects Pro models to increase by more than $200 year-over-year due to rising NAND and DRAM costs. 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.