Kenny Rogers once said that you've got to know when to fold 'em and it looks like Apple (AAPL) has gotten the message.
The computer giant is reportedly working on a foldable iPhone that could be released as early as 2026 and has, in recent months, reached out to suppliers in Asia to make components for the device, according to The Information.
Related: Apple at record high as analysts revamp stock price targets
The phone is said to fold horizontally, like the clamshell-style Samsung Galaxy Z Flip. This would be Apple's first major design change to its flagship product since the iPhone X in 2017.
The device has an internal nickname, V68, indicating “the idea has moved beyond the conceptual stage” and is now “in development with supplier,” The Information reported, citing two people with direct knowledge of the matter.
Apple is reportedly still working to flatten the crease that appears when the phone is unfolded and is also attempting to make the device thinner.
Foldable smartphones powered by artificial intelligence are expected to trigger demand for the iPhone maker, which faces stiff competition from Honor and Huawei in China and Samsung globally.
The global foldable smartphone market grew 49% in the first quarter from a year earlier, according to a report from Counterpoint Research, driven by Huawei, Honor and Motorola.
Huawei ascended to the top spot in quarterly global shipments for the first time, overtaking Samsung, which had consistently led the market, the firm said.
Apple CEO Cook is 'very bullish' about AI
Meanwhile, Apple's iPhone will adopt a new 1/2.6-inch 48MP Ultra-Wide CMOS image sensor made by Samsung (SSNLF) as early as 2026, breaking Sony's years-long monopoly as Apple's CIS supplier, according to Apple analyst Ming-Chi Kuo in a note published on X, the platform Twitter.
“To this end, Samsung has established a dedicated team to serve Apple,” Kuo said.
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Apple did not immediately comment on either one of the reports.
This is happening amid the artificial intelligence revolution, which industry analysts believe will spark a hardware replacement cycle to make AI-compatible devices.
Apple Intelligence is the computer giant’s AI platform. The company plans a major reboot of its Siri digital assistant and a series of new features for its 2.2 billion-strong hardware base.
Apple's strategy is to integrate a host of artificial intelligence-powered tasks, such as summarization, text generation, photo editing, and enhanced search, into its ecosystem of iPhones, iMacs, and iPads.
"We can’t wait to reveal what we have in-store," CEO Tim Cook told analysts in May. "We continue to feel very bullish about our opportunity in Generative AI. We are making significant investments, and we’re looking forward to sharing some very exciting things with our customers soon."
TheStreet Pro’s Bob Lang noted in a July 22 column that Apple's stock “has been on fire for the past month, exploding higher on massive turnover in June and follow-through.”
“But as we know, at some point, the stock is going to take a rest, and that may be coming up,” Lang said. “For now, the stock appears to be correcting, or at least wiping off the froth from recent highs.”
Apple is scheduled to post third-quarter earnings on Aug. 1.
Analysts expect a bottom line of $1.34 per share on revenue of $84.2 billion, a 2.9% increase from the same period last year.
Analyst sees Apple 'well-positioned'
Some firms have adjusted their stock price targets before Apple's earnings report.
JPMorgan raised Apple's stock price target to $265 from $245 and kept an overweight rating on the shares.
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The firm established a year-end 2025 price target relative to its prior December 2024 price target heading into Apple's fiscal third-quarter earnings.
JPMorgan expects investors to start pivoting and looking beyond 2024, and it sees Apple as well positioned to drive higher confidence from the upcoming earnings print.
Apple should reassure investors that the upcoming AI replacement cycle, earmarked to begin in earnest in fiscal 2025 and step up further into fiscal 2026, is leveraging a more robust launchpad in fiscal 2024 with better-than-expected revenue drivers in iPhone and for the company in aggregate, the firm said.
JPMorgan placed Apple's shares on "Positive Catalyst Watch" ahead of the earnings print, with a positive outlook for share price outcomes.
Barclays raised Apple's stock price target to $187 from $164 and kept an underweight rating on the shares.
The firm raised September quarter forecasts on better iPhone, Mac, and Services, which it says hasn't happened in several quarters. Barclays now expects 9% revenue growth in 2025 for Apple after two flattish years.
While numbers are "finally moving higher" and hope that the artificial intelligence iPhone will help investor sentiment, Barclays said it sees less upside potential with the stock at a 30-times price-to-earnings multiple.
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