Apple (NASDAQ: AAPL) could be a good stock to buy, according to Rothschild & Co. analyst Timm Schulze-Melander. He believes investors are not fully recognizing the potential of Apple’s possible foldable iPhone. In addition, Schulze-Melander recently upgraded AAPL from “neutral” to “buy.” He also raised his price target from $260 to $400.
One of the biggest reasons for his optimism is Apple’s possible entry into the foldable smartphone market. Granted, the company has not officially announced a foldable iPhone. However, several reports suggest the company is working on one and could release it in the near future.
Plus, Apple analyst Ming-Chi Kuo says Apple could begin making foldable phones next year
Investors May Be Underestimating Apple
Also, the analyst said the company’s product plans, especially its move into foldable phones, are “underappreciated” by investors. In simple terms, he thinks the market is not giving Apple enough credit for the growth a foldable iPhone could bring.
In addition, Schulze-Melander expects the company’s average iPhone selling price to increase by about 11% by June 2027 because of the new foldable model. That could be important for Apple because the company does not always need to sell more phones to increase revenue. Selling more expensive phones can also help boost its overall sales.
Analysts Expect Strong Foldable Sales
Schulze-Melander has big expectations for the potential new phone. He predicts the company could sell around 14 million foldable iPhones during the company’s 2027 fiscal year. That would be a significant number for a brand-new product. The analyst estimates that around four million foldable iPhones would replace sales of traditional iPhones.
We also have to consider that foldable smartphone market is already growing, with companies such as Samsung offering their own devices. Better, according to analysts at Fortune Business Insights, the market could grow from about $41.43 billion in 2026 to more than $116.86 billion by 2034.
There Are Still Some Risks
There are plenty of unknowns. Apple has not confirmed that it will release a foldable iPhone, so investors should treat these forecasts as estimates rather than guarantees. There is also no guarantee that the phone will sell as well as analysts expect. The final price, design and features could all affect demand.
However, despite the uncertainty, Schulze-Melander believes the potential is large enough to make AAPL more attractive.
His $400 price target reflects his view that AAPL’s future growth could come from more than just its current iPhone lineup. A new high-priced foldable iPhone could give Apple another way to increase sales, raise average prices and attract customers.
For now, investors will have to wait for Apple to officially reveal its plans. But if the reports are correct, the company’s first foldable iPhone could become an important new product—and a potential boost for the company’s stock.