Morgan Stanley estimates Apple’s first foldable iPhone could generate roughly $14 billion in revenue during the December quarter, underscoring the product’s significance for the company’s growth trajectory.
The bank projects initial production volumes of 7 million to 8 million units in the second half of 2026, with total shipments reaching up to 20 million over the device’s first product cycle. Analyst Erik Woodring anticipates the foldable model—expected to launch alongside the iPhone 18 Pro line—will mark the largest iPhone form-factor change since the iPhone X, representing the first major redesign in nearly a decade.
Apple’s pricing strategy for the foldable iPhone is expected to include the broadest like-for-like price increases in its history, with Pro models rising by more than $200 year over year. The firm attributes the higher costs to elevated NAND and DRAM prices, as well as the transition to TSMC’s 2nm process for enhanced on-device artificial intelligence performance.
Supply constraints, particularly in memory components, are projected to limit near-term build volumes despite strong initial demand. Morgan Stanley noted Apple appears prioritizing component availability over buyer acquisition, signaling confidence in the product’s market appeal.
The launch event, scheduled for next week, will be led by new CEO John Ternus, marking the first time in 15 years that Tim Cook will not headline the occasion. The base iPhone 18 and iPhone Air 2 are not expected until the spring, suggesting a staggered rollout for Apple’s latest portfolio updates.
