Analyst Timm Schulze-Melander raised Apple's rating from neutral to buy, setting a price target of $400, which suggests a 31% upside from the stock's recent close. Although Apple has not officially announced a foldable phone, reports indicate that the company is likely to introduce one soon.
Schulze-Melander anticipates that Apple's entry into the ultra-premium foldable market could increase the average selling prices of iPhones by 11% by June 2027, with projected sales of 14 million units in fiscal year 2027. He estimates that only 4 million of these sales will come at the expense of traditional iPhone sales, indicating a minimal impact on overall sales.
The analyst believes that a well-designed foldable iPhone aligns with Apple's brand and could achieve market success. Despite a recent decline of 8% in Apple's stock over the past month, the company has seen a 13% increase year to date, and the majority of analysts remain optimistic about its prospects