Bank of America’s latest Asia supply chain checks suggest Apple Inc (NASDAQ:AAPL, XETRA:APC) is preparing to introduce its first foldable iPhone in 2026, as the firm reiterated its ‘Buy’ rating while modestly lowering its price objective to $320 from $325.
Shares traded hands at $252 on Monday afternoon.
The updated target is based on an unchanged 32x multiple applied to calendar 2027 estimated earnings per share of $9.94, down from a prior estimate of $10.10.
“Our checks in Asia suggest that Apple will likely introduce its first foldable iPhone in 2026,” Bank of America wrote, adding that this marks a significant shift in the company’s product lineup.
The device is expected to feature a book-style foldable design with a 7.7- to 7.8-inch inner display and a thickness of under 10mm when folded. The first-generation model is anticipated to include Touch ID, but not Face ID, and will not support a physical SIM card.
Bank of America expects strong early demand, noting that the supply chain is preparing for a wide range of outcomes between 10 million and 20 million units. This would exceed volumes seen from competing foldable devices, with the firm pointing to potentially stronger demand from China and from existing Pro and Pro Max users seeking larger displays.
The Asia checks also indicate a shift in Apple’s iPhone launch cadence. The firm said the foldable and Pro models are still expected to launch in the traditional September timeframe, while base models and other variants could be pushed to the first half of 2027, likely around March.
Bank of America said it is “adjusting estimates to reflect this change in launch timing,” as well as the higher expected average selling price of the foldable device. The revised schedule is expected to shift some unit volumes from the September and December quarters into the March quarter, altering Apple’s typical seasonality in a way that is “not yet reflected in consensus.”
As a result, fiscal 2026 may see some pressure on unit volumes and revenue due to timing shifts, while fiscal 2027 is expected to normalize as the new cadence is absorbed, according to Bank of America.
The analysts explained that launching a broader lineup of devices simultaneously creates significant strain on the supply chain. A staggered rollout would allow for more balanced production and improved labor management, with quarterly iPhone volumes estimated to stabilize in the 60 million to 70 million range.