BofA Confirms 2026 Foldable iPhone, Lowers Price Target to $320
Bank of America confirmed that Apple is preparing to introduce its first foldable iPhone in 2026, according to a report published on March 23. The analysis, based on the bank's checks of Apple's Asian supply chain, signals a major new product category for the technology giant. In response to the findings, the bank reiterated its 'Buy' rating on Apple Inc. (AAPL) stock.
Despite the bullish outlook on the new product, Bank of America modestly lowered its 12-month price objective for Apple to $320 from $325. The report was issued as Apple's shares were trading at $252, suggesting significant upside potential. This move signals confidence in Apple's long-term innovation pipeline even as near-term financial targets are slightly adjusted.
Device to Target Ultra-Premium Market at Over $2,000
Apple is pursuing a strategy of "strategic patience" by entering the foldable market later than competitors like Samsung. This approach allows the company to learn from early market flaws and perfect its technology before launch. The centerpiece of this strategy is a display designed to be nearly crease-free, a common issue with existing foldable devices. Rumors suggest Apple is using a dual-layer ultra-thin glass structure and an innovative hinge to minimize the fold's visibility and improve durability.
This premium engineering will come at a high cost, with the foldable iPhone expected to be priced between $2,000 and $2,500, placing it in the ultra-premium smartphone category. Reports indicate the device will feature a large internal screen of approximately 7.8 inches when unfolded, positioning it as a hybrid phone-tablet device aimed at power users and tech enthusiasts.
Analysts Eye Strong Demand in China for New Model
Despite recent concerns about Apple's performance in China, analysts see the foldable iPhone as a key catalyst for growth in the region. A late 2025 Morgan Stanley survey revealed that upgrade intentions in China have reached all-time highs. The same survey found that consumer interest in a foldable iPhone was surprisingly strong, suggesting a ready market for the new device upon its release.
This expected demand provides a strong counter-narrative to concerns of market saturation and competition. By introducing a novel, high-end product, Apple could reinvigorate its brand and capture a new segment of the market that prioritizes innovation and is willing to pay a premium for it. The foldable device is seen not just as a new product, but as a strategic tool to maintain momentum in one of Apple's most critical international markets.
Edgen Stock·Mar 23 2026, 19:37
