If you are not emotionally ready for a foldable iPhone from the technology giant Apple (AAPL), at least be ready for it as an investor, says Citi analyst Atif Malik.
Malik sees a rapid ramp of the foldable iPhone starting later this year and going into 2027. He expects the device to debut at Apple’s annual fall launch alongside the iPhone 18 Pro/Pro Max models.
“With the premium pricing of around $2,000 and the timing of the launch, we expect a limited foldable iPhone shipment of around 8 million units in 2026, or ~3% of the total iPhone shipment, which will likely grow to 20 million units in 2027,” Malik wrote in a note on Tuesday.
The analyst reiterated a Buy rating on Apple — about 50% of Wall Street analysts rate Apple a Buy, Yahoo Finance data shows. He lowered his price target to $315 from $330, citing margin risk from rising memory chip prices.
Apple stock has been dead money for more than a year as investors have turned to more AI-centric names from the “Magnificent Seven,” such as Nvidia ( NVDA ) and Microsoft ( MSFT ). Not helping matters are renewed trade tensions between the Trump administration and Apple’s key markets in Europe and China.
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Apple shares have lagged the S&P 500 (^GSPC) over the past year, gaining 11% compared to a 15% advance for the S&P 500. The stock isn’t doing any better to start 2026, either — shares are down 6%, tying Meta (META) for the worst-performing member.
But Apple may be ready to improve the narrative on the stock.
On the one hand, Apple just inked an important agreement with Google (GOOG), where Google’s Gemini models and cloud technology will power the next generation of the smartphone manufacturer’s AI for Siri. While some experts say the deal is an admission that Apple is well behind in the AI race, others contend at least Apple is now in the game.
Second, a long-delayed foldable iPhone creates a new reason for people to finally upgrade from previous iterations of the iPhone.
More than a third of new US iPhone buyers have kept their previous phones for three years or more, according to research from Consumer Intelligence Research Partners. The percentage of iPhone buyers with phones two years or older increased to 70% in 2024 from 66% in 2023.
“Upcoming catalysts include the launch of a foldable iPhone in the fall and the launch of Siri enhanced with integration with Gemini AI that could drive higher improvements,” said BofA analyst Wamsi Mohan.