Apple‘s (AAPL) iPhone 18 Pro has hit store shelves on Friday, coming out a full month before the foldable iPhone Duo’s release in late October.
CFRA Research senior vice president and equity analyst Angelo Zino comes on Market Domination to discuss his forecast surrounding demand for the foldable iPhone.
So at least initially, Angelo, are you are you sort of suggesting, okay, investors should think of the Duo as a kind of a uh a low volume, high margin product?
Yeah, I mean we’re looking we initially we’re looking for about 4 to 5% of the volume to come from the um from the duo. I think at this point time as Apple’s going to be able to I think sell essentially every single duo that they’re able to to make. So if, you know, there’s the potential we think for that number to be higher.
Let’s call it closer to 5 to 8% of the units, but clearly because of that pricing, you’re going to talk you’re going be talking about north of 10% of the actual revenue for the iPhone coming from the duo. So, yeah, I mean I again, it’s this is going to be more of how supply constrained is that device going to be and I think at the very least, listen, the early indications for these pro devices here, um is a pretty solid start to this iPhone 18 cycle.
If I’m an investor, Angelo, do I have to wait until, I guess, um after Apple’s, you know, big holiday quarter? Would that would that be the first uh real good read on on how strong the upgrade cycle could be?
Yeah, I mean I think this the interesting thing about this cycle, I think is it’s going to have longer legs to it. And I think, you know, the fact that they Apple is almost, um, you know, is is pushing out those base devices into the the March probably into that March quarter is going to help kind of sustain some of that I think momentum as we go into the March and June quarters.
I think again, you know, something else that we have to consider is what is the China demand going to look like, right? Um, China historically has liked these foldable devices and whether or not they have any sort of sticker shock or willing to pay up for those devices, I think it remains to be seen whether or not some of those consumers might be holding off on these pro devices. Um, again, it all remains to be seen, but I think, um, that that is going to be a variable that’s out there as well because the China, when you look at China revenue here for the iPhone 17 team cycle, it’s been incredibly strong.
