Apple prices iPhone Duo at $1,999, below Wall Street estimates
Apple unveiled its first foldable iPhone at $1,999 during Wednesday's "Surprise and Shine" event. Analysts said the lower-than-expected price could pressure hardware gross margins even as the device drew broad praise.
Apple Inc. (NASDAQ: AAPL ) priced its first foldable iPhone below Wall Street’s expectations. For the analysts covering the stock, that is exactly the problem. The $1,999 iPhone Duo drew broad praise.
Apple unveiled it Wednesday at the “Surprise and Shine” event, the first major product launch under CEO John Ternus. The worry is what cheaper-than-expected phones do to Apple’s profit on each device. BofA Likes The Duo, Not The Math Behind Bank of America Securities analyst Wamsi Mohan reiterated a Buy rating but cut his price target to $370 from $380. 3% above Thursday’s price.
“In our opinion, iPhone Duo stole the show,” Mohan said. He said the foldable screen brings iPad-like productivity to a phone, which opens a bigger market for Apple. He also said the new form factor could become more mainstream over time. Before the event, BofA had expected a $2,099 foldable and price hikes of $150 to $200 on the Pro models.
Instead, the Duo landed at $1,999. The iPhone 18 Pro and Pro Max rose $100 each, to $1,199 and $1,299. Cheaper phones could sell more. They could also earn less.
Read Also: QUICK SPARK: iShares 20+ Year Treasury ETF TLT Hits Lowest Levels Since 2004 Mohan raised his iPhone unit forecast by 2 million for fiscal 2026 and by 5 million for fiscal 2027, to 256 million in each year. He now sees 54 million iPhones shipped in the September quarter, up from 52 million. He also cut his average selling price assumption by $14 for fiscal 2027, to $1,099. That figure is the typical price Apple collects per iPhone.
With memory and component costs rising, a lower price squeezes gross margin, which is the share of each sales dollar Apple keeps after paying to build the product. 92. 32. 6% upside.
The firm said the modest price increases help affordability but could create more headwinds for hardware gross margin over the coming year. It estimates Apple will ship roughly 6 million Duo units in the second half of 2026. 4% below Thursday’s price. Crockett said Apple’s light-touch pricing could weigh on gross margins as memory costs climb.
Three firms. Three different targets. One shared worry. How Far Apart Wall Street Stands on Apple Apple carries a consensus Buy rating from 29 analysts tracked Analyst Ratings.
5% upside from Thursday’s price. Recent targets range from $245 at Barclays to $400 at TD Cowen and Rothschild & Co. 23 Trillion Price Tag: Does the Treasury Have the Cash? Photo courtesy: Apple