Apple's Foldable iPhone Could Add $14 Billion in Quarterly Revenue, Morgan Stanley Says

A potential foldable iPhone from Apple Inc. (NASDAQ: AAPL) could generate approximately $14 billion in revenue during the crucial December quarter, according to a new analysis from Morgan Stanley. The investment bank views the prospective device as the company's most consequential product launch since the iPhone X.

Revenue and Production Forecast

In a note to clients, analyst Erik Woodring projected strong initial demand for the rumored device, which would mark Apple's entry into the foldable market. The bank's model forecasts Apple could build:

• 7 million to 8 million units in the second half of 2026.
• Up to 20 million units over the course of the first product cycle.

Morgan Stanley noted that it expects strong initial demand to be met with constrained supply, as Apple focuses on securing a sufficient component pipeline.

A Test of Pricing Power

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The launch would also serve as a critical test of Apple's pricing power, with the bank anticipating the largest like-for-like iPhone price increases in years. The report suggests that rising costs for NAND and DRAM memory could drive the price of Pro models up by more than $200 compared to the previous year.

Beyond the foldable design, a key technological upgrade for the iPhone 18 Pro is expected to be the move to TSMC's 2nm process. This would likely be positioned as a way to enhance on-device artificial intelligence (AI) performance.

Market Context

Morgan Stanley described the potential September 9 event as one that will "prove to be anything but ordinary." The analysis suggests the event could be headlined by new CEO John Ternus, leading the company into its first major iPhone form factor change in nearly a decade. The bank cautioned that memory supply could cap near-term production builds, indicating Apple is currently "more focused on securing enough components than finding enough buyers."