Apple’s Foldable iPhone Hype: Is AAPL Stock a Smart Buy?
Apple is heavily invested in its next major hardware development, with anticipation centered on a foldable iPhone anticipated to debut in the fall of 2026. Ming-Chi Kuo, an analyst at TF International Securities, projects initial shipments to reach between 3 million and 5 million units in 2026, significantly increasing to 20 million units by 2027. This development highlights Apple’s continued focus on innovation and expanding its product portfolio.
The anticipated ultra-thin glass design for the foldable iPhone presents both opportunities and challenges. The technology is exceptionally prone to cracks, which would substantially increase production costs, potentially pushing prices two to four times higher than traditional glass. This would put pressure on profit margins despite the company’s plans for premium pricing. However, if the device performs as expected, Apple’s loyal customer base could drive continued replacement demand. The book-style device is speculated to feature a 7.8-inch internal display, a 5.5-inch exterior panel, Touch ID, dual lenses, and a stainless-steel-titanium hinge, indicative of a refined and premium design.
Analysts are increasingly focused on Apple’s foldable ambitions, prompting investors to consider strategically whether now is the right time to invest in the company’s shares ahead of this anticipated product launch cycle. Apple’s consistent investment in research and development and its ecosystem make it a compelling player in the smartphone market.
On October 30, 2025, Apple announced its Q4 2025 financial results, surpassing expectations. Revenue rose 7.9% year-over-year to $102.5 billion, exceeding the projected $101.2 billion, while earnings per share (EPS) increased 90.7% compared to the previous year’s quarter, reaching $1.85, which surpassed the consensus estimate of $1.73. This strong performance was attributed to robust demand for both hardware and services. The successful launch of the iPhone 17 lineup, alongside consistent sales of the MacBook Air and sustained growth in its services division, contributed significantly to the overall results. The iPhone continued to be the primary engine of growth. Specifically, iPhone revenue reached a record $49 billion during the quarter, reflecting a 6% increase year-over-year, fueled by strong uptake of the iPhone 16 and 17 models, which led to an all-time high in the installed base.
Apple’s Mac division experienced a substantial 13% year-over-year increase in revenue, reaching $8.7 billion, primarily driven by robust demand for the MacBook Air. Furthermore, services continued to be a critical catalyst for growth, generating a record $28.8 billion in quarterly revenue, marking a 15% increase year-over-year and demonstrating significant growth across both developed and emerging markets. Looking ahead, Apple management has guided for a record December quarter, projecting between 10% and 12% year-over-year revenue growth. This expectation hinges on continued strong iPhone growth, sustained momentum in the services sector, expanded AI capabilities, and ongoing investment in research and development.
Analysts share this confidence, forecasting a full-year fiscal 2026 EPS rise of 10.4% to $2.65, followed by a full-year bottom line growth of 8.7% to $8.11 in fiscal year 2026, and a further 12.5% increase to $9.12 in fiscal year 2027, supporting a strong long-term growth narrative. Morgan Stanley analyst Erik Woodring recently raised his price target for AAPL stock to $315 from $305, maintaining a “Buy” rating and identifying Apple as one of his preferred IT hardware stocks entering 2026. The consensus rating for AAPL currently stands at “Moderate Buy,” with 21 analysts assigning a “Strong Buy” rating, three “Moderate Buy,” 14 “Hold,” one “Moderate Sell,” and one “Strong Sell,” offering a potential upside of 6.3% from current levels, with a street-high target of $350 implying a 27.9% gain.
Currently, Apple boasts a market capitalization of $4 trillion, reflecting investor confidence in the company’s enduring brand and ecosystem. The stock has experienced a 9.56% increase over the past 52 weeks, driven by a 39.2% rally in the past six months, showcasing strong market performance. Investor sentiment regarding Apple remains robust due to its continuous innovation and loyal customer base.
