MW Apple's stock rises as enthusiasm builds for a potential foldable iPhone

By Hannah Pedone

Analysts point to strong consumer interest in what could be a 'major form-factor change' for Apple

Apple is expected to follow Samsung and Huawei by showing off its first foldable phone.

Against a gloomy backdrop for smartphone shipments this year, there could be one bright spot for Apple.

Analysts have generally worried that high prices for memory components could drive up the cost of smartphones and crimp consumer demand. But Morgan Stanley and Bank of America analysts see a catalyst on the horizon for Apple , which is expected to unveil its first foldable iPhone later this year.

Morgan Stanley analyst Erik Woodring said in a Sunday note that Apple's expected entry into the foldable-phone business could be powerful, doubling the market for these devices by the end of fiscal 2027. In terms of the company's own financials, he thinks Apple could generate $40 billion to $60 billion in revenue from foldable phones in the next 18 months.

According to Morgan Stanley's AlphaWise Smartphone Survey, 27% of global iPhone users, and 40% of users in China, are "extremely interested" in the idea of a foldable iPhone.

Apple's stock $(AAPL)$ was up 1.2% in midday trading on Monday.

The excitement over the possible product introduction comes as Apple and other smartphone makers must deal with the specter of rapid increases in prices for memory chips, a key component of smartphones. While the company has long-term agreements with suppliers, it remains to be seen how long the company will be relatively insulated from the higher prices, or whether it would choose to raise consumer-facing prices if its own costs increase meaningfully.

The International Data Corporation expects the overall smartphone market to shrink by roughly 13% in 2026, in part driven by memory-related pressures.

Read more: Buying stocks everyone loves is a recipe for underperformance - but Apple breaks the rule

Apple would be a latecomer to the world of foldable phones - with Bank of America analyst Wamsi Mohan noting that Samsung and Huawei both released foldable smartphones in 2019. Those launches helped ignite strong interest in the category among Chinese consumers. China accounted for half of global foldable smartphone shipments in 2025, according to data from IDC and Morgan Stanley Research.

Mohan expects Apple to enter the foldables market while moving to a more staggered approach for iPhone launches that seeks to avoid "very high demand on the supply chain" at peak times and a big comedown thereafter.

"Given that is a major form-factor change, we expect initial demand to be strong," he wrote.

See also: Apple's new $599 MacBook Neo borrows iPhone chip to make play for budget-laptop market share

-Hannah Pedone

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March 23, 2026 13:18 ET (17:18 GMT)

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