Apple's iPhone 18 Launch Could Be Most 'Consequential' Since iPhone X, Morgan Stanley Says

11:09 AM EDT, 09/02/2026 (MT Newswires) -- Apple's (AAPL) upcoming iPhone 18 launch could be its most "consequential" since the iPhone X, as the company prepares to introduce its first foldable iPhone alongside what could be the largest like-for-like price increases in years, Morgan Stanley said in a note Wednesday. The investment firm said it expects "strong" initial demand for the foldable iPhone, with about 6.5 million shipments likely in the December quarter to potentially generate roughly $14 billion in revenue. The iPhone 18 Pro lineup is expected to adopt Taiwan Semiconductor Manufacturing's (TSM) 2-nanometer process, which could improve on-device artificial intelligence performance and power efficiency, according to the note. Rising NAND and DRAM costs are expected to push starting prices for the iPhone 18 Pro and Pro Max up by $200, though supply-chain checks suggest Apple remains confident in demand, Morgan Stanley said. Component availability, particularly memory supply, could limit near-term builds, the note added. The firm said it leans more positively than negatively on Apple, but noted that further stock upside will depend on strong post-launch sell-through and positive earnings estimate revisions. Morgan Stanley has an overweight rating on Apple, with a price target of $360. Price: 324.56, Change: -0.57, Percent Change: -0.18