Apple shares gain as analysts back foldable iPhone pricing strategy

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Apple foldable iPhone pricing

Highlights

Apple's Duo foldable phone debuts at a $1,999 starting price, undercutting investor expectations and Samsung’s Galaxy Fold7 by $1, signaling a push for adoption.
Apple shares rise nearly 1% to $318 in early Thursday trading, diverging from typical post-launch trends of flat or declining stock reactions.
Analysts say Apple’s focus on competitive Duo pricing and ecosystem updates could expand its addressable market and support growth in higher-margin services.

Analyst views on Duo pricing and product positioning

As reported by CNBC, analysts largely welcome Apple’s launch of the Duo as part of its annual product event, though some remain cautious about how much demand foldable phones can generate beyond a niche segment.

Morgan Stanley analyst Erik Woodring says the $1,999 starting price is meaningfully below investor expectations of $2,300 to $2,500 and even $1 below Samsung’s Galaxy Fold7. He says the pricing shows Apple is prioritizing adoption rather than maximizing near-term economics.

JPMorgan analyst Samik Chatterjee calls the Duo attractively priced and says it creates an opportunity to win users switching from rival foldable smartphones. Melius analyst Ben Reitzes also responds positively to the device’s thin and sturdy design, while Needham analyst Laura Martin warns that foldable smartphones still account for only about 5% of the overall smartphone market, suggesting weaker consumer demand for the category.

Among other broker views, Bank of America reiterates a buy rating and $370 price target, saying the Duo represents a meaningful form-factor shift and could expand Apple’s addressable market by enabling more iPad-like productivity. UBS keeps a neutral rating with a $296 target and says Apple’s $100 price increases on Pro and Pro Max models are in line with expectations, while Jefferies, which rates the stock underperform with a $264 target, says Apple appears focused on protecting unit volumes even at the expense of margin.

Stock reaction and broader implications for Apple

Apple shares are up less than 1% in early Thursday trading to nearly $318, breaking with a longer-running pattern in which the stock often falls or shows little change after major product launches.

Bank of America says in a Tuesday analysis of major product releases since 2007 that Apple shares have more often declined or stayed flat the day after a launch than risen. The current move therefore suggests investors are responding favorably not only to the foldable device itself, but also to Apple’s broader pricing and product strategy.

Analysts also point to wider implications for Apple’s ecosystem. Jefferies says stronger unit volume can help Apple preserve supply-chain leverage at a time of high semiconductor demand tied to AI, while also supporting growth in its higher-margin services business through a larger iOS installed base. Evercore ISI, which rates the stock outperform with a $365 target, also highlights updates to Apple Intelligence, Siri and camera features as part of the company’s broader effort to reinforce the appeal of its hardware and software ecosystem.

Our earlier coverage of Apple’s debut in foldable smartphones with the $1,999 iPhone Duo outlined the key launch details and why early discussion centered on the visibility and durability of the screen crease. We also noted that the unveiling landed amid broader market volatility, with U.S. Treasury long-dated bond buybacks and a renewed jump in oil prices adding pressure across rates, energy and tech.

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