Morgan Stanley projects foldable iPhone to add $14 billion in December revenue

Morgan Stanley projects Apple's first foldable iPhone will add roughly $14 billion to December-quarter revenue. The analysis describes the device as the biggest iPhone form-factor change since the 2017 iPhone X. Erik Woodring, Morgan Stanley's head of US technology hardware equity research, said shipments are expected to start in October or early November 2026. Woodring said 7 million to 8 million units are expected to be built in the second half of 2026. He said as many as 20 million units could be built during the full first product cycle. Morgan Stanley expects strong early demand. The report says supply will remain constrained. The September 9 product event will test Apple's pricing power. Morgan Stanley expects Pro models to rise more than $200 year over year because of higher memory costs. The report calls the increases the broadest like-for-like price increases in Apple's history. The device will use TSMC's 2-nanometer process for improved on-device AI performance. Other estimates place the foldable model's price between $2,300 and $2,500. Woodring maintained an Overweight rating on Apple. He kept a $360 price target on the stock. Woodring said Apple tends to outperform heading into launch events. He said bullish momentum dwindles on the day of the event. Woodring added that sustained gains will ultimately depend on later estimate revisions. APPL traded at $324 at Wednesday's close.