Apple's Foldable iPhone Duo Nears Launch as Cramer Flags Catalyst, Morgan Stanley Trims Target

Cramer said Thursday on CNBC's Morning Meeting that investors should keep their bat on their shoulder and be ready to swing if Apple shares wobble ahead of the release. He argued Wall Street may be underestimating the importance of the iPhone Duo to the company's financial and stock performance, including analysts at Morgan Stanley. According to CNBC, Apple shares fell about 1% Thursday afternoon to roughly $329 apiece. After touching a fresh 52-week high of $345.34 on Sept. 22, the stock is off over 4%.

Apple unveiled its first foldable device at its annual fall hardware event on Sept. 9. The iPhone Duo starts at $1,999 and is available in star white and night sky colors. Apple says it has the largest ever display of the iPhone product line and is sleek and compact enough to easily fit in a pocket; when closed, it is about the size of a passport. Cramer previewed the device at Apple's flagship New York store on Sept. 18 and believes the Duo is a game-changer for the investment narrative. He acknowledged that the new non-folding models, the iPhone 18 Pro and Pro Max, may not be blockbusters in the way last year's iPhone 17 crushed consensus expectations. This is the first iPhone launch under CEO John Ternus, who succeeded Tim Cook on Sept. 1.

Morgan Stanley maintained a buy-equivalent rating but slightly cut its price target by $5 to $355 per share. The firm said it will be tougher for Apple shares to realize significant outperformance following a strong six-month run, during which the stock rose more than 28%. The analysts wrote that the next two-plus years of product innovation under Ternus are among the more exciting and consequential in recent history. They expect Apple to deliver four consecutive years of iPhone unit growth for the first time since fiscal 2015, with earnings per share compounding at approximately 13% between fiscal years 2026 and 2028. Apple's fiscal 2027 began on Sunday. But the analysts said their model is little changed from pre-launch. They modestly raised revenue estimates, citing stronger iPhone production and potential upside in Mac and Services pricing, but lower-than-expected average selling prices for the new iPhones and rising memory costs largely offset those gains, leaving the EPS outlook for fiscal years 2027 and 2028 broadly unchanged.

In the U.S., the iPhone 18 Pro starts at $1,199, up $100 from the iPhone 17 Pro entry price. The iPhone 18 Pro Max begins at $1,299, also a $100 increase from the prior year. Another notable change in Apple's fall lineup is the absence of a base model. Only the premium Pro and Pro Max are on the market for now. The company is expected to introduce the standard iPhone 18 in the spring. Cramer did not dispute Morgan Stanley's research but argued the firm is not giving enough weight to the iPhone Duo's long-term promise. He said there are only five mentions of the Duo in the Morgan Stanley piece and called the Duo revolutionary, suggesting Morgan Stanley is allowing the device's limited first-year supply to overshadow the future growth opportunity. Morgan Stanley expects up to 20 million units to be produced during the Duo's first cycle, bringing in $43 billion in fiscal 2027 revenue, or only 14% of the firm's total projected iPhone sales of $301.9 billion for that year. Cramer said he asked Ternus at the iPhone 18 launch event in New York whether the company would have enough Duos to meet demand; Ternus said he thinks so. Cramer's Charitable Trust is long AAPL.

Separately, Apple's Instagram account published a carousel featuring six photos commissioned from photographers Jake Michaels and Jason Nocito to highlight the new iPhone Duo's cameras, according to 9to5Mac. The campaign is part of Apple's long-running Shot on iPhone effort, which has run for the past 10 years, won multiple Cannes Lions including two Grand Prix and been nominated twice for an Emmy for Outstanding Commercial. The iPhone Duo has 48-megapixel rear cameras, a 12-megapixel front camera and a FaceTime camera under the inner display. Apple has announced that customers will be able to get ready for iPhone Duo preorders beginning Oct. 12, with preorders starting Oct. 16 and deliveries and in-store availability beginning Oct. 23.