Foldable iPhone Could Drive Apple's Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Underwhelming Market Performance: Apple's stock (AAPL) has declined by 2% over the past six months, with a market cap around $3.7 trillion, as investors express frustration over the slow rollout of AI features, raising concerns about its growth potential.
- Foldable Phone Potential: Analyst Erik Woodring estimates that the anticipated launch of a foldable iPhone could generate between $40 billion and $60 billion in revenue over the next year and a half, providing a significant incentive for customers to upgrade their devices.
- Strong Sales Performance: Despite the slow introduction of AI features, Apple's iPhone sales remained robust in the most recent quarter, indicating that customer demand for new devices is not being adversely affected by the pace of AI development.
- Long-Term Investment Opportunity: The upcoming foldable iPhone could attract more customers, and although the stock trades at about 32 times its trailing earnings, it is still considered a safe long-term investment with potential for significant growth in the future.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 246.630
Low
239.00
Averages
306.89
High
350.00
Current: 246.630
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Sales Growth Driver: The successful launch of the iPhone 17 has propelled Apple's latest quarterly year-over-year revenue growth to nearly 16%, marking the highest growth rate in over three years, indicating that devices remain a crucial revenue source for the company.
- Service Business Outlook: With over 2.5 billion active devices and paid accounts reaching an all-time high, Apple's services segment shows significant growth potential, expected to comprise a larger share of total sales in the future, thereby enhancing profits and margins.
- Investment Value Assessment: Although Apple's price-to-earnings ratio stands at 28.8, above the industry average of 20.9, its strong brand, cash flow, and growth opportunities suggest the stock remains attractive, especially after a 14% pullback, making it a buy on the dip.
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- Stock Performance Weakness: Despite having a market cap of approximately $3.7 trillion, Apple's stock has declined by 2% over the past six months, as investors express frustration over the slow rollout of AI features, reflecting concerns about its growth potential.
- Strong Upgrade Incentive: The launch of the foldable iPhone could incentivize existing users to upgrade their devices, especially as the new model is expected to better support future AI capabilities, further driving sales growth and enhancing brand loyalty.
- Long-Term Investment Opportunity: Although Apple's stock trades at about 32 times its trailing earnings, the anticipated launch of the foldable iPhone may present an opportunity for investors to see a rebound in stock price, making it a compelling option for long-term holding.
See More
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- Underwhelming Market Performance: Apple's stock (AAPL) has declined by 2% over the past six months, with a market cap around $3.7 trillion, as investors express frustration over the slow rollout of AI features, raising concerns about its growth potential.
- Foldable Phone Potential: Analyst Erik Woodring estimates that the anticipated launch of a foldable iPhone could generate between $40 billion and $60 billion in revenue over the next year and a half, providing a significant incentive for customers to upgrade their devices.
- Strong Sales Performance: Despite the slow introduction of AI features, Apple's iPhone sales remained robust in the most recent quarter, indicating that customer demand for new devices is not being adversely affected by the pace of AI development.
- Long-Term Investment Opportunity: The upcoming foldable iPhone could attract more customers, and although the stock trades at about 32 times its trailing earnings, it is still considered a safe long-term investment with potential for significant growth in the future.
See More
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- User Experience Impacted: Many beginners and non-professional developers rely on tools like Replit for app development, and Apple's restrictions may alienate these users, affecting their loyalty to the iPhone and future app development intentions.
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See More
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- Market Milestone: Apple achieved a $4 trillion market cap by the end of 2025, joining a select group of companies, although its stock has declined by 14% from its peak, reflecting investor concerns over tech stocks.
- Sales Growth Driver: The successful launch of the iPhone 17 has propelled Apple's latest quarterly year-over-year revenue growth to nearly 16%, marking the highest growth rate in over three years, indicating that devices remain a crucial revenue source for the company.
- Service Business Outlook: With over 2.5 billion active devices and paid accounts reaching an all-time high, Apple's services segment shows significant growth potential, expected to comprise a larger share of total sales in the future, thereby enhancing profits and margins.
- Investment Value Assessment: Although Apple's price-to-earnings ratio stands at 28.8, above the industry average of 20.9, its strong brand, cash flow, and growth opportunities suggest the stock remains attractive, especially after a 14% pullback, making it a buy on the dip.
See More
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- Market Rally: The S&P 500 index rose by 2.91%, the Dow Jones Industrial Average by 2.49%, and the Nasdaq 100 by 3.43%, reflecting market optimism regarding the potential end of the Iran war, which could lower energy prices and ease inflation concerns.
- Consumer Confidence Boost: The US March consumer confidence index unexpectedly increased by 0.8 to 91.8, surpassing the anticipated decline to 87.9, indicating a strengthening consumer outlook that may drive spending and economic growth.
- Strength in China: China's March manufacturing PMI rose to 50.4, better than the expected 50.1, signaling signs of economic recovery that could positively impact global growth prospects and further support US stock performance.
- Falling Bond Yields: The 10-year Treasury note yield dropped to 4.28%, a one-week low, reflecting reduced inflation worries, which may provide support for the stock market and enhance investor interest in equities.
See More
Apple Set to Launch Foldable iPhone This Year
- Significant Revenue Potential: Analysts project that Apple's upcoming foldable iPhone could generate up to $60 billion in revenue within the next 18 months, which would significantly enhance the company's financial performance and strengthen its market position.
- Stock Performance Weakness: Despite having a market cap of approximately $3.7 trillion, Apple's stock has declined by 2% over the past six months, as investors express frustration over the slow rollout of AI features, reflecting concerns about its growth potential.
- Strong Upgrade Incentive: The launch of the foldable iPhone could incentivize existing users to upgrade their devices, especially as the new model is expected to better support future AI capabilities, further driving sales growth and enhancing brand loyalty.
- Long-Term Investment Opportunity: Although Apple's stock trades at about 32 times its trailing earnings, the anticipated launch of the foldable iPhone may present an opportunity for investors to see a rebound in stock price, making it a compelling option for long-term holding.
See More
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- Underwhelming Market Performance: Apple's stock (AAPL) has declined by 2% over the past six months, with a market cap around $3.7 trillion, as investors express frustration over the slow rollout of AI features, raising concerns about its growth potential.
- Foldable Phone Potential: Analyst Erik Woodring estimates that the anticipated launch of a foldable iPhone could generate between $40 billion and $60 billion in revenue over the next year and a half, providing a significant incentive for customers to upgrade their devices.
- Strong Sales Performance: Despite the slow introduction of AI features, Apple's iPhone sales remained robust in the most recent quarter, indicating that customer demand for new devices is not being adversely affected by the pace of AI development.
- Long-Term Investment Opportunity: The upcoming foldable iPhone could attract more customers, and although the stock trades at about 32 times its trailing earnings, it is still considered a safe long-term investment with potential for significant growth in the future.
See More
Apple's Crackdown on AI Coding Apps Threatens Innovation
- Update Blocked: Apple has blocked updates for at least two popular AI coding apps, including Replit, citing safety concerns, a move that risks pushing developers to other platforms and undermining Apple's leadership in the developer ecosystem.
- Market Potential: The AI coding tools market has rapidly emerged in the past 18 months, with companies now valued in the billions, and Apple's restrictive measures could lead to innovation flourishing outside its ecosystem, impacting App Store revenues.
- User Experience Impacted: Many beginners and non-professional developers rely on tools like Replit for app development, and Apple's restrictions may alienate these users, affecting their loyalty to the iPhone and future app development intentions.
- Strategic Misstep Risk: While Apple aims to protect its App Store, it may inadvertently drive developers to open web platforms, risking a loss of competitive advantage in future app ecosystems, reminiscent of the challenges faced in the 1990s.
See More
Apple Hinders Development of AI Coding Tools
- Founding Mission Divergence: As Apple celebrates its 50th anniversary, it diverges from its founding mission by hindering the development of AI coding tools, particularly through restrictions on updates for apps like Replit, significantly impacting ordinary users' ability to create and potentially driving future developers away.
- App Store Policy Controversy: Apple has blocked updates for Replit citing safety concerns, despite the app allowing users to create and test software within a browser, highlighting Apple's stringent control over its App Store, which may undermine user trust in the iPhone ecosystem.
- Increased Market Competition: With the rise of vibe coding tools valued in the billions, the App Store has seen a 60% year-over-year increase in releases, indicating the potential of this emerging market, and Apple's continued obstruction could lead to a loss of market share.
- Risk of Developer Exodus: Apple's strategy may push developers towards open web platforms, deteriorating the iPhone app ecosystem; historically, Apple has faced crises due to excessive control, and failing to adapt could lead to a repeat of past mistakes.
See More
