Wall Street Responds To Apple's Foldable iPhone As Margin Risks Cloud Launch
Apple revealed its new foldable iPhone on Wednesday afternoon, and Wall Street analysts were largely positive about the specs and demand outlook. However, enthusiasm for the device diminished by mounting concerns that restrained price hikes across the iPhone lineup could pressure hardware margins.
Apple shares are up 1% in premarket trading in New York and about 1.6% higher since the unveiling of the new foldable iPhone and iPhone 18 Pro lineup. The new foldable iPhone starts around $2,000, with the premium model costing up to $3,199.
Did Apple learn anything from the failed launch of the $3,500 Vision Pro?
The question floating around multiple Wall Street desks overnight and into Thursday morning is how much of that foldable iPhone and new lineup demand translates into profit.
Jefferies analysts, who maintain an underperform rating and a $263.66 12-month price target, said Apple appears focused on boosting volumes at the expense of margins. Unchanged pricing for the iPhone 17 and Air could support demand while pressuring profitability.
TD Cowen, which rates Apple a "Buy" with a $400 price target, similarly warned that modest price increases could create hardware gross-margin headwinds. The analysts highlighted the new 2-nanometer chip's doubling of AI speed.
"Price increases were modest, which aids affordability, but hardware GM could face more headwinds in the coming year," TD Cowen analysts said.
Vital Knowledge analysts noted, "Duo is a very 'cool' device, with a competitive price point, but it remains to be seen whether Apple can manufacture enough of them to meet demand."
Here is Citi analyst Atif Malik's first take on iPhone Duo:
Bernstein's Mark Newman asked clients, "What about gross margins?"
Newman explained:
Goldman analyst Michael Ng's first take:
Apple shares initially fell as Wednesday afternoon's launch event began around 1 p.m. ET, then reversed course and rallied 3% from the session low.
For new CEO John Ternus, the foldable iPhone's roughly $2,000 to $3,200 price tag sets up a major test of Apple's pricing power and ability to scale production. Strong demand could lift revenue and shift sales toward premium devices, but soaring memory costs coupled with modest price hikes could threaten margins, according to warnings on Wall Street desks.
Tyler Durden Thu, 09/10/2026 - 09:15
Continue reading...
[ H/T ZeroHedge ]
Apple revealed its new foldable iPhone on Wednesday afternoon, and Wall Street analysts were largely positive about the specs and demand outlook. However, enthusiasm for the device diminished by mounting concerns that restrained price hikes across the iPhone lineup could pressure hardware margins.
Apple shares are up 1% in premarket trading in New York and about 1.6% higher since the unveiling of the new foldable iPhone and iPhone 18 Pro lineup. The new foldable iPhone starts around $2,000, with the premium model costing up to $3,199.
Did Apple learn anything from the failed launch of the $3,500 Vision Pro?
The question floating around multiple Wall Street desks overnight and into Thursday morning is how much of that foldable iPhone and new lineup demand translates into profit.
Jefferies analysts, who maintain an underperform rating and a $263.66 12-month price target, said Apple appears focused on boosting volumes at the expense of margins. Unchanged pricing for the iPhone 17 and Air could support demand while pressuring profitability.
TD Cowen, which rates Apple a "Buy" with a $400 price target, similarly warned that modest price increases could create hardware gross-margin headwinds. The analysts highlighted the new 2-nanometer chip's doubling of AI speed.
"Price increases were modest, which aids affordability, but hardware GM could face more headwinds in the coming year," TD Cowen analysts said.
Vital Knowledge analysts noted, "Duo is a very 'cool' device, with a competitive price point, but it remains to be seen whether Apple can manufacture enough of them to meet demand."
Here is Citi analyst Atif Malik's first take on iPhone Duo:
Bernstein's Mark Newman asked clients, "What about gross margins?"
Newman explained:
Goldman analyst Michael Ng's first take:
Apple shares initially fell as Wednesday afternoon's launch event began around 1 p.m. ET, then reversed course and rallied 3% from the session low.
For new CEO John Ternus, the foldable iPhone's roughly $2,000 to $3,200 price tag sets up a major test of Apple's pricing power and ability to scale production. Strong demand could lift revenue and shift sales toward premium devices, but soaring memory costs coupled with modest price hikes could threaten margins, according to warnings on Wall Street desks.
Tyler Durden Thu, 09/10/2026 - 09:15
Continue reading...
[ H/T ZeroHedge ]
