Apple (NASDAQ: AAPL) is reportedly preparing its most crowded iPhone lineup in years. According to supply chain reports cited by Asian news site Nikkei Asia, the company plans at least five new iPhone models between the back half of 2026 and early 2027, headlined by its first foldable smartphone — and it has raised the production target for that foldable, rumored to carry a price around $2,500, to about 10 million units, reportedly up from an earlier 7 million to 8 million. The reports helped fuel one of the stock’s best sessions of the year.
But the more useful question for shareholders isn’t whether a folding iPhone is cool. It’s whether a product blitz like this can move the earnings of a tech giant that sells more than 220 million phones a year.
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Image source: Apple.
Sizing the foldable opportunity
Start with how central the iPhone still is. In Apple’s fiscal second quarter (the period ended March 28, 2026), iPhone revenue rose 22% year over year to about $57 billion, a March-quarter record, out of about $111 billion in total sales. That is more than half of the company coming from a single product line.
But how big of a catalyst could a foldable iPhone really be?
Ten million units at about $2,500 works out to around $25 billion of potential revenue in a full year — a meaningful slice of the more than $200 billion the iPhone generates annually, and mostly a fiscal 2027 story rather than this year’s.
Even more, spreading five models across price tiers is a deliberate move to grab share from rivals at both the high and low ends of the market.
Put those pieces together, and the foldable looks less like a blockbuster and more like a halo. It probably won’t add much to any single quarter’s revenue on its own. What it can do, however, is reset the ceiling on iPhone prices, pulling some upgraders into a pricier tier. In a maturing smartphone market, defending the high end while broadening the lineup to reach more price points could be a serious lever.
What it means for the stock
Ultimately, the biggest reason for investors to be upbeat about a busy iPhone product cycle is that it shows that the company is trying to aggressively grow its installed base of active devices — the foundation of its high-margin services.
And this important segment already has impressive momentum. Services revenue rose 16% to a record $31 billion in the same quarter.
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But keep in mind that these new products won’t show up in the tech giant’s financials for a while. The foldable’s revenue mostly lands next year, so this news bears on fiscal 2027’s numbers, not the print later this month. Apple reports third-quarter results for fiscal 2026 on July 30, and management has guided for revenue growth of 14% to 17%.
Then there is the stock’s price. Shares change hands at about 37 times earnings, a premium that already assumes a strong product cycle.
And there are other risks beyond valuation risk. Apple has never shipped a foldable, and a first-generation product in a brand-new form factor carries real execution risk — hinges, unique displays, and manufacturing yields are all hard to get right. And even a runaway hit could be capped at a certain volume.
Still, the figure that ultimately moves Apple’s earnings over the long haul won’t be foldable units. It’s total iPhone volume and how many of those buyers deepen their spending on services over time.
Overall, I do think Apple stock looks good here, but reports are still reports. I’d treat the foldable as upside optionality stacked on top of an iPhone-and-services engine that’s already growing at a double-digit clip — a reason to keep owning Apple, but not a reason to chase it on a rumor. With that said, if the rumor proves true, I think fiscal 2027 could be a major year for the company — and maybe for the stock, too.
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Daniel Sparks and his clients have positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
Apple Is Reportedly Planning 5 New iPhones — Including a $2,500 Foldable. Here’s What It Means for the Stock. was originally published by The Motley Fool
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