Apple (AAPL) shares are in focus ahead of the giant’s highly anticipated launch event where it’s expected to unveil its next-generation lineup, likely including the first foldable iPhone.
While tech enthusiasts are buzzing over the expected hardware shift, institutional investors remain skeptical that a foldable device will act as an immediate catalyst that drives AAPL higher.
Ahead of the big event, Apple stock AAPL is up more than 15% versus the start of this year (2026).
Foldable iPhone unlikely to drive Apple stock higher
According to market experts, the launch of a foldable iPhone could in fact turn into a classic “sell-the-news” event.
“I’m not expecting the stock to do a whole heck of a lot coming out of the announcement. It usually doesn’t.” said Tidal Financial senior strategist Michael Khouw in a pre-event interview with CNBC
Reinforcing his stance, Bank of America analyst Wamsi Mohan told clients that AAPL shares have declined following 10 out of 24 major product launches since 2007, while staying roughly flat on five other occasions.
Although Apple historically gains momentum over a longer 60-day horizon post-event – analysts agree that immediate enthusiasm may be muted as traders lock in profits following recent rallies.
What matters for AAPL shares than a foldable iPhone
Instead of a foldable iPhone, experts are intently focused on underlying financial metrics, pricing power, and artificial intelligence (AI) integration.
Freedom Capital’s head of tech research Paul Meeks recently expressed skepticism over the form factor, saying “a very expensive foldable phone does not get me jazzed – Samsung has had one for years.”
Instead, attention centers on whether Apple can raise prices by over $100 to preserve profit margins against surging memory component costs.
Analysts at HSBC and MoffettNathanson emphasize that pricing structure and CEO commentary on near-term replacement cycles and large language model (LLM) features will drive Apple shares far more than hardware novelties.
How to play Apple Inc at current levels?
Ultimately, a foldable iPhone represents a complex margin balancing act for Apple rather than an immediate windfall.
With MoffettNathanson estimating that a premium “Ultra” foldable would require a price tag close to $2,500 – approaching baseline MacBook Pro levels – to avoid diluting AAPL’s standard 40% product margins, consumer adoption could face structural volume limitations.
While the luxury price tag would test brand loyalty, long-term valuation upside rests on software monetization and execution.
If Apple successfully pairs high-margin hardware with expanding AI ecosystem capabilities, the device could support long-term revenue growth, even if it fails to ignite an immediate AAPL stock pop today.
What’s the consensus rating on AAPL?
Note that Wall Street remains bullish as ever on Apple Inc for the long-term.
According to The Wall Street Journal, the consensus rating on AAPL sits at Overweight currently, with price targets going as high as $400.
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