UBS sees strong demand for Apple's foldable iPhone; $100 Pro price hike deemed reasonable

UBS Securities said in a report on Thursday (10th) that Apple's (AAPL-US) new foldable iPhone brings a 'significant form factor change' to the iPhone product line, and the $100 price increase for Pro and Pro Max models achieves a reasonable balance between market demand and rising component costs.

According to MT Newswires, UBS Securities stated that the three-model lineup is 'broadly' in line with expectations, adding that initial demand for the Duo could be quite strong among 'existing Apple customers,' with sales potentially exceeding 5 million units in the fiscal year 2026.

The firm noted that if more Pro and Pro Max customers shift to this new design, additional sales could reach 6 million units, contributing approximately 2% to UBS's projected 261 million iPhone units sold in fiscal 2026. UBS maintains its iPhone-related forecasts 'unchanged,' predicting $252.4 billion in iPhone revenue and 261 million units sold in fiscal 2026.

The company pointed out that Apple's $100 price hike for Pro and Pro Max models aligns with its expectations. The report stated that while this price increase does not fully offset rising memory costs, a $200 hike would have a materially negative impact on market demand.

UBS maintains a 'neutral' rating on Apple stock with a target price of $296 per share.