Apple's Upcoming Foldable iPhone Model Will Drive Major Upside: Analyst

Growing enthusiasm around Apple Inc‘s (NASDAQ:AAPL) iPhone 17 demand and anticipation for next year’s foldable iPhone 18 has analysts optimistic about the company’s multi-year growth outlook.

JPMorgan analyst Samik Chatterjee, for example, says the Cupertino, California-based company heads into its upcoming earnings report with its strongest investor sentiment in a year.

Improved data on iPhone demand and stabilization across Apple’s broader business have helped rebuild investor confidence, Chatterjee says. He added:

• The Services segment continues to perform strongly, growing roughly 13% in the fiscal third-quarter and expected to maintain that pace into fourth-quarter—despite fears that new “link-out” payment options would slow growth.
• A recent court ruling in the Alphabet Inc (NASDAQ:GOOGL) Google–DOJ case also suggests minimal impact on Google’s traffic acquisition costs paid to Apple, which supports Services revenue stability.
• An accelerated shift in manufacturing outside China—particularly to India and Vietnam—and its increased U.S. investments have reduced the company’s exposure to tariffs and supply chain risks.

The analyst noted that optimism surrounding Apple’s stock now centers on the iPhone 17’s sales trajectory and expectations for the iPhone 18 series, which will likely include the company’s first foldable model.

“In the midst of a positive product cycle with iPhone 17 series and with expectations for another robust product
cycle with the launch of the foldable iPhone as part of the iPhone 18 series, we expect the valuation multiple attributed to the shares could present higher-than-anticipated upsides beyond the earnings revisions,” Chatterjee added.

See Also: iPhone 17 Lead Times Remain High: Gene Munster Says ‘Data Reinforces The Optimism’

Apple Forecast

Looking ahead, Chatterjee expects Apple to post high single-digit revenue growth in both fiscal fourth-quarter 2025 and fiscal first-quarter 2026. The analyst forecasts fourth-quarter revenue of $103 billion and earnings per share (EPS) of $1.81, above the $102 billion and $1.77 consensus.

Apple’s subsequent product cycles—the current iPhone 17 lineup and the upcoming iPhone 18—will accelerate revenue growth through fiscal 2026 and 2027, Chatterjee says. These factors, combined with easing tariff pressures and operational efficiencies, should drive margin expansion and earnings upgrades.

Chatterjee argued that Apple’s clear visibility into a multi-year product cycle, coupled with strong execution in both Hardware and Services, supports further upside in the stock.

Price Action: Apple shares were trading higher by 1.15% to $265.90 at last check Monday.

Read Next:

Image: Shutterstock