Apple’s Future Looks Bright: iPhone 18 & Foldable Device Spark Major Stock Upgrade
Cupertino, CA – In a stunning reversal of fortune, Morgan Stanley has dramatically upgraded its outlook for Apple (AAPL), sending ripples of optimism through the tech world. Just months after lowering its price target due to concerns about iPhone 17 demand, the firm now predicts a significant surge in sales, fueled by the upcoming iPhone 18 and the revolutionary iPhone Fold. This is breaking news that investors are paying close attention to.
From Caution to Confidence: A Dramatic Shift in Forecast
Back in March 2025, Morgan Stanley expressed worries about lackluster upgrade demand for the iPhone 17 series, setting a price target of $252. However, recent analysis of supply chain data and investor notes reveals a far more positive picture. Analysts now believe initial demand for the iPhone 17 is stronger than anticipated, with production expected to ramp up significantly in the coming months – increasing from 84-86 million units to over 90 million by the end of 2025.
This boost is largely attributed to robust sales of the iPhone 17 Pro and Pro Max models, which are offsetting weaker demand for the standard iPhone 17. But the real game-changer, according to Morgan Stanley, lies on the horizon.
iPhone 18: A “Replacement Cycle Explosion” is Coming
The firm anticipates a massive upgrade cycle with the release of the iPhone 18 in 2026. A key factor driving this prediction is the large number of existing iPhone users who are still using older devices – a demographic Morgan Stanley describes as owning “old” iPhones. As these users become ready for an upgrade, they’re expected to flock to the iPhone 18, creating a surge in demand.
Evergreen Insight: The concept of a “replacement cycle” is fundamental to understanding smartphone sales. Manufacturers rely on users upgrading their devices every few years, driven by new features, improved performance, and the desire for the latest technology. A strong replacement cycle is a key indicator of a company’s future success.
Six iPhones in 2026? The iPhone Fold Takes Center Stage
Morgan Stanley is predicting an ambitious lineup for 2026, with Apple potentially launching up to six different iPhone models: the iPhone 17e (a low-cost option), the standard iPhone 18, the iPhone Air, the groundbreaking iPhone Fold, the iPhone 18 Pro, and the iPhone 18 Pro Max.
The iPhone Fold, Apple’s first foray into the foldable smartphone market, is being hailed as a potential “star” product, capable of injecting significant vitality into global sales. The firm estimates total iPhone sales could reach 243 million units in 2026, with a potential to climb to 270 million if the iPhone Fold proves to be a runaway success and Apple Intelligence delivers on its promise.
Image Placeholder: (Image: Concept rendering of the iPhone Fold)
Beyond Hardware: Google Search & Geopolitical Resilience
Morgan Stanley’s optimism isn’t limited to hardware. The firm also highlights Apple’s strategic prowess, accurately predicting the company would maintain its lucrative search contract with Google – a critical source of service revenue. Furthermore, they commend Apple’s proactive approach to navigating geopolitical challenges and strengthening its supply chain.
Evergreen Insight: Apple’s reliance on Google for search revenue is a fascinating case study in the tech industry. While some analysts predicted Apple would develop its own search engine, the continued partnership demonstrates the value of collaboration and the complexities of disrupting established markets.
The $376 Price Target: What It Means for Investors
With these factors in mind, Morgan Stanley has raised its price target for Apple to $376 – a substantial increase from its previous forecast. However, analysts caution that this success hinges on two key elements: the appeal of the iPhone Fold and Apple’s ability to leverage Apple Intelligence to differentiate itself from competitors in the increasingly crowded AI landscape.
The iPhone 18 isn’t just an upgrade; it needs to represent a new era for the iPhone, delivering a compelling experience that justifies the investment for millions of users. The future of Apple, it seems, rests on folding screens and intelligent software.
Stay tuned to archyde.com for the latest updates on Apple, the iPhone 18, and the evolving world of technology. We’ll continue to provide in-depth analysis and breaking news to keep you informed.
