Apple Stock Faces Pressure From Declining iPhone Revenue: Could Company's First Foldable Smartphone In 2026 Reverse Course?

Technology giant Apple Inc AAPL has been rumored to be working on foldable devices such as smartphones for several years.

A new report says the company's first foldable could be here as early as 2026.

What Happened: In the most recently reported first quarter, Apple saw its iPhone revenue fall from $69.7 billion to $69.1 billion on a year-over-year basis.

Hoping for new signs of growth, Apple has launched the more affordable iPhone 16e and could have more news on the way about a foldable phone to win over investors.

GF Securities analyst Jeff Pu said Apple's first foldable is coming in 2026 and it could help the company recover from its lower-than-expected iPhone sales, as reported by 9to5Mac.

Pu said Apple's smartphone market will "recover in 2026" with two new foldable devices. The analyst said at least one of the devices will enter mass production in the second half of 2026 with Apple already working with suppliers.

The analyst said the foldable device "remains on track" to reach "P1" next month, an early stage of prototyping for Apple.

The report from Pu falls in line with other analysts like Ming-Chi Kuo who said the company's first foldable iPhone coming in 2026 could cost $2,000 or more.

Along with a foldable iPhone, Apple is also working on a foldable device with an 18-inch screen, which would likely be a new Mac or iPad.

Why It's Important: Apple's rollout of Apple Intelligence AI features on the iPhone 16 may have underwhelmed users and led to fewer upgrades from customers.

With users waiting for more features, the question around a foldable iPhone quickly becomes whether customers are ready to pay a premium for this technology.

A foldable smartphone has been in the works for Apple for years with CEO Tim Cook speaking to engineers about a foldable iPhone back in 2018, suggesting it as a key priority for the future.

Competitors including Samsung Electronics SSNLF, Alphabet Inc.’s GOOGGOOGL Google and Motorola have already released foldable phones.

While foldable smartphones make up a small percent of the overall smartphone market, Apple entering the space could serve as a true test for demand and key features available within the technology.

With chatbots becoming more predominantly used and smartphones functioning as more than just a phone, the ability to expand to a larger out-of-pocket device could become a feature consumers turn to and never look back on again.

AAPL Price Action: Apple stock was up 0.24% to $214 at market close Monday versus a 52-week trading range of $164.08 to $260.09. Apple stock is down 12.2% year-to-date in 2025 and up 23.2% over the last year.

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