Rothschild Upgrades Apple: Foldable iPhone Underestimated by the Market
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Rothschild & Co upgraded Apple from neutral to buy, lifting its target from $260 to $400 — implying roughly 31% upside — arguing the market has yet to price in Apple's foldable-phone potential.
Why did a bank just raise its target by 54%?
Analyst Timm Schulze-Melander argues Apple's move into foldable phones is underappreciated by the market, with product-roadmap strength not yet reflected in the stock.
The target jumped from $260 straight to $400, implying about 31% upside from last Friday's close.
This means → this is not a minor tweak but a repricing of Apple's revenue mix over the next one to two years.
How would a foldable iPhone boost Apple's earnings power?
Schulze-Melander expects Apple's entry into the ultra-premium foldable segment to lift iPhone average selling price (ASP — the average price per handset) by 11% through June 2027.
He forecasts about 14 million foldable iPhones (tentatively dubbed "iPhone Ultra") sold in fiscal 2027.
Of those, roughly 4 million would cannibalize traditional iPhone volume of 257 million units — a cannibalization rate of just ~2%.
In plain terms = the price uplift from the new product far outweighs the lost sales from the old one — the net effect is positive.
Will Apple actually build a foldable?
Apple has not officially confirmed any foldable-phone launch plan.
Multiple reports indicate the product is in active development; well-known Apple analyst Ming-Chi Kuo said in June he expects a "premium-priced" foldable as early as next year.
This reflects a market expectation shifting from "rumor" toward "probable launch" — though timing and pricing remain uncertain.
How does the broader market view Apple?
Apple shares are up about 13% year-to-date but have pulled back roughly 8% over the past month.
LSEG data show 29 out of 47 covering analysts rate Apple a buy or strong buy — overall sentiment skews bullish.
This means → Rothschild's upgrade is not an isolated call, but whether the foldable actually ships on time at the expected price will be the key checkpoint for the entire thesis.
Content is for reference only, not financial advice.