What Happened?
Shares of iPhone and iPad maker Apple (NASDAQ: AAPL) jumped 4.1% in the morning session after reports it plans an aggressive launch of at least five new iPhone models and has increased production targets for its first foldable device.
The news, first reported by Nikkei Asia, indicates the new models will launch between the second half of 2026 and the first half of 2027. Apple reportedly asked suppliers to prepare for the production of about 10 million foldable iPhones, an increase from an earlier forecast of seven to eight million units.
This move suggests the company is confident in its new product line and aims to expand its market share. The first foldable model is rumored to be named "iPhone Ultra." In response, Morgan Stanley analysts noted Apple has a path to more than 250 million iPhone shipments in fiscal year 2027, should the new foldable models and AI features drive stronger demand.
After the initial pop, the shares cooled down to $305.86, up 3.9% from the previous close.
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What Is The Market Telling Us
Apple’s shares are not very volatile and have only had 1 move greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock dropped 5.2% on the news that it officially raised prices across Macs, iPads, home devices and the Vision Pro, a rare mid-cycle hike that the market read as confirmation that memory-cost inflation is squeezing its margins.
The same AI-driven memory shortage that sent Micron soaring appeared to hit Apple from the cost side, pushing it to lift hardware prices. Apple "took the extreme measure" (per Bloomberg) of raising prices mid-cycle, lifting the MacBook Air to $1,299 from $1,099 and the MacBook Neo to $699 from $599.
This confirmed CEO Tim Cook's warning that increases are "unavoidable" amid a supply squeeze he likened to a "hundred-year flood." DRAM and NAND prices were projected to jump 58–63% and 70–75% respectively quarter-over-quarte as suppliers divert capacity to AI server chips.
Because Apple books memory as cost of goods sold, the hit lands straight on gross margin, which management already guided down to 47.5–48.5% for the June quarter from 49.3% in March. The risk being priced is a double bind: if buyers resist pricier devices while costs stay elevated (tightness may persist "well into 2028," per Deutsche Bank), Apple could see softer volumes and thinner margins at once.
Several overhangs amplified the tone: a still-unconfirmed Apple–Intel manufacturing arrangement (announced by Trump on June 18, which analysts say offers no near-term benefit), a newly approved multi-billion-pound UK class action over iCloud pricing that threatens the high-margin services business, questions about Apple's AI roadmap, and reported insider selling of over $111 million in three months.
Apple is up 12.9% since the beginning of the year, and at $305.86 per share, it is trading close to its 52-week high of $315.20 from June 2026. Investors who bought $1,000 worth of Apple’s shares 5 years ago would now be looking at an investment worth $2,185.
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