Morgan Stanley Sees Apple’s Product Cycle Gaining Momentum

Apple’s first foldable iPhone has given Morgan Stanley a fresh reason to stay bullish, even after the stock’s rally pushed its valuation into demanding territory.

Analyst Erik Woodring reiterated an Overweight rating and a $360 price target, arguing that Apple’s September 9 product event showed a more compelling pace of hardware and software innovation than investors had expected. The target implies roughly 9% upside from Apple’s latest quoted price near $331.34.

The centerpiece is iPhone Duo, Apple’s first foldable smartphone. The device opens to a 7.6-inch display, uses the A20 Pro chip and adds multitasking features designed around its larger screen. Apple said preorders will begin October 16, with retail availability scheduled for October 23. That timing gives investors a new premium product to watch during the holiday quarter, while also creating a potential foothold in a category where Samsung and other rivals have already spent years building demand.

Woodring’s broader argument rests on more than one device. Apple’s refreshed iPhone 18 Pro lineup, new Apple Watch models and AirPods 5 expand the upgrade funnel, while Siri AI and Apple Intelligence are now available through the company’s latest operating-system releases. Apple says Siri AI can use personal context, onscreen awareness and information across apps, though the assistant is rolling out in beta and is initially limited by language and regional availability.

That matters because Apple’s AI story has so far been judged less by headline spending than by whether software can persuade customers to replace older phones. Morgan Stanley previously pointed to a large installed base of devices that cannot handle Apple’s more demanding AI features, creating room for a multiyear upgrade cycle, according to market coverage of the firm’s research.

The risks have not disappeared. Apple’s fiscal third-quarter revenue reached $109.4 billion, but Services growth slowed and the company guided for September-quarter revenue growth below some Wall Street expectations. Higher memory costs and supply constraints also threaten margins.

For now, Morgan Stanley is betting that a more adventurous product pipeline can outweigh those near-term frictions and extend Apple’s growth story into fiscal 2027.