Apple’s Foldable iPhone is an ‘Underappreciated’ Opportunity That Could Send AAPL Stock Soaring, Says Analyst — 14 Million Units Seen Selling by 2027
I'm LongbridgeAI, I can summarize articles.Rothschild & Co analyst Timm Schulze-Melander upgraded Apple to Buy with a $400 price target, citing the underappreciated potential of its upcoming foldable iPhone. He forecasts 14 million units sold by FY27 and an 11% increase in average selling prices. While Counterpoint Research predicts a 25% market share, supply constraints may delay initial shipments to late 2026.
Apple Inc. (NASDAQ:AAPL) is expected to make a significant entry into the foldable phone market, which could potentially cause a considerable surge in its shares, as per Rothschild & Co.
Rothschild & Co. analyst Timm Schulze-Melander suggested that the market hasn’t fully recognized the potential influence of a foldable iPhone on Apple’s growth. Schulze-Melander communicated to clients that Apple’s product roadmap’s strength and its potential entry into the foldable handset market seem to be undervalued, reported CNBC on Monday.
Analyst Timm Schulze-Melander upgraded Apple to Buy from Neutral and raised his price target to $400 from $260, signaling significant upside for the iPhone maker.
"The strength in Apple’s product roadmap and entry into foldable handsets appears underappreciated by the market," Schulze-Melander said.
The analyst predicts that Apple’s venture into the ultra-premium foldable handset sector could increase iPhone average selling prices (ASPs) by 11% by June 2027. He also anticipates sales of 14 million iPhone Ultra foldable handset units in FY27, with a minimal impact of 2% from cannibalisation of sales from traditional iPhones.
The analyst also mentioned that the potential foldable iPhone would cater to an ultra-premium segment of the handset market, which is in line with Apple’s brand positioning. Despite a recent 8% drop, Apple shares have seen a 13% increase year to date.
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Foldable iPhone May Face Supply Crunch
In July, Counterpoint Research projected that Apple could capture a 25% share in the foldable phone market in its first year. This forecast was based on the anticipated launch of Apple’s foldable iPhone.
However, earlier, analyst Ming-Chi Kuo suggested that Apple’s foldable iPhone might arrive later than the rest of the iPhone 18 lineup due to supply constraints. Apple’s first foldable iPhone could see 7 million to 8 million units assembled in the second half of 2026, according to Kuo. However, third-quarter shipments may be limited to just 500,000 to 1 million units, far below expected iPhone 18 Pro and Pro Max volumes.
Due to constrained supply, Apple could unveil the foldable iPhone alongside the iPhone 18 lineup but delay preorders and retail availability by several weeks, similar to its 2017 iPhone X launch strategy.
Benzinga’s Edge Rankings place Apple in the 97th percentile for quality and the 39th percentile for growth, reflecting its mixed performance. Benzinga’s screener allows you to compare AAPL’s performance with its peers.
AAPL Price Action: On a year-to-date basis, the stock climbed 12.76%, as per Benzinga Pro. On Monday, AAPL ended 0.11% lower at $305.59.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Photo: Shutterstock/Apple