Foldable iPhones Are Reportedly Still on Track for September. Should You Buy AAPL Stock Here?
Earlier this week, a report from Nikkei Asia claimed that Apple’s (AAPL) foldable iPhone was facing engineering challenges that could delay the expected September 2026 launch if not resolved. This news resulted in AAPL stock losing about 4% value intraday on April 7, although shares recovered from the day’s low. Most of the loss in…
Earlier this week, a report from Nikkei Asia claimed that Apple’s (AAPL) foldable iPhone was facing engineering challenges that could delay the expected September 2026 launch if not resolved. This news resulted in AAPL stock losing about 4% value intraday on April 7, although shares recovered from the day’s low. Most of the loss in value was recovered the same day after a Bloomberg report suggested that Apple is actually on track for the September launch. So, which piece of news should investors take to be true?
The market reaction suggests that Bloomberg is right. Nikkei Asia based its conclusion on news that some component suppliers had been notified of the possibility of a delay. The reason for this delay, however, isn’t clear. Engineering challenges just six months before launch are unlikely, especially when the phone is expected to be available in a limited supply anyway.
Having said that, it is still possible that both reports are right here. Apple might be facing issues in ramping up production, which is consistent with the timing. However, Apple may also be able to launch the product in limited supply on time, especially if the hurdles are limited to mass production and not the phones themselves.
Apple is a global manufacturer, designer, and marketer of smartphones, PCs, tablets, wearables, and accessories. The company provides Macs, iPads, iPhones, wearables like the Apple Watch, and more as well as AppleCare support, cloud services, streaming through Apple TV+, and advertising services. Founded in 1976, the company is based in Cupertino, California.
The performance of AAPL stock has outpaced the broader S&P 500 Index ($SPX). Shares have posted returns of about 30% in the last 12 months while the S&P 500 has gained around 24% during the same period. However, the stock has fallen 5% year-to-date (YTD), which is slightly worse than the index’s drop of 1%.
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Apple stock is trading exactly where it was 18 months ago. In the most recent quarter, the company reported year-over-year (YOY) earnings growth of more than 18%. For the current quarter, Apple is expected to maintain earnings growth in the 13% to 14% range.
In this context, the forward price-to-earnings (P/E) ratio of 30 times, compared to the five-year average of 28.7 times, looks appealing. The forward price-to-book ratio also trades at a discount compared to the five-year average. AAPL stock is trading cheap relative to its own historic valuation, yet investors continue to pay a premium compared to the S&P 500 mainly because of the strong ecosystem that the company commands through its devices and services.
Apple posted its first-quarter fiscal 2026 earnings report on Jan. 29. Revenue for the quarter came in at $143.8 billion, marking impressive growth of 16% YOY. Notably, the company reported $85.3 billion in iPhone revenue, representing a 23% YOY increase. Net income reached $42.1 billion, while diluted EPS was $2.84. Operating cash flow reached a record high of $53.9 billion as well. At the end of the quarter, Apple had $145 billion in cash and marketable securities.
Management expects total revenue for the March quarter to increase 13% to 16% YOY. Gross margin is projected to be in a range between 48% and 49%, while operating expenses are forecast at a range of $18.4 billion to $18.7 billion. The company’s huge cash pile continues to remain a question mark amid its apparent lack of innovation in AI and refusal to spend money on AI infrastructure like the rest of the hyperscalers.
On April 7, Evercore ISI analyst Amit Daryanani reaffirmed an “Outperform” rating on AAPL stock along with a price target of $330. The analyst also questioned the accuracy of reports suggesting a delay in the company’s first foldable iPhone. The firm still expects the foldable iPhone to launch in September and maintains its rating on shares. In February, Goldman Sachs also reiterated its “Buy” rating with a price target of $330.
Based on 42 analysts with coverage, Apple stock has a consensus “Moderate Buy” rating. The strong analyst support reflects analysts’ confidence in the company’s growth potential. AAPL stock has a mean price target of $296.04, offering 14% potential upside from current levels.
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On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
