Munster Sees Apple Stock Outperforming on iPhone Duo Hype
Apple's stock has seen a slight surge in premarket trading after the company revealed its first foldable phone, the iPhone Duo. Gene Munster, Managing Partner at Deepwater Asset Management and a long-time tech analyst and investor, believes that Apple's stock is likely to outperform over the next week.
Munster was impressed by the Duo's design, calling it 'sick' due to its thin form factor and nearly seamless screen. He also praised the device's display, which is about 50% larger than the iPhone Pro Max. Before the event, Munster estimated that the Duo would account for around 5% of iPhone revenue in fiscal 2027, but he has now doubled that estimate to 10%.
Munster predicts that if one-third of Pro Max buyers choose the Duo instead, it could increase iPhone revenue by about 5% and total Apple revenue by 2.5% in fiscal 2027. He also expects the delayed split iPhone launch to boost revenue in the March quarter, particularly among customers who need a new iPhone before the standard models are released.
Apple's stock currently has a consensus Moderate Buy rating based on 16 Buys, 11 Holds, and four Sells issued in the last three months. The average AAPL price target of $336.78 implies 6.8% upside from current levels.