Could Apple's Latest iPhone Be Its Biggest Growth Catalyst in Years?

In September, Apple (NASDAQ:AAPL) announced a new lineup of products, as it always does. The company debuted the iPhone 18, but the main event was arguably the unveiling of the iPhone Duo, Apple's first attempt at a Foldable smartphone. This was hardly a surprise. Rumors that Apple would finally launch a foldable version of its famous device had been circulating for months.

Apple's decision to launch the iPhone Duo was likely driven by its perception of tangible consumer interest. But will demand for the iPhone Duo be strong enough to make this device a meaningful growth driver?

Image source: Getty Images.

Early signs are positive

So far, the evidence suggests that Apple was correct: Demand for the iPhone Duo has been off the charts. Pre-orders apparently sold out quickly. According to some estimates, iPhone Duo shipments through the end of 2026 could total between six million and 10 million. Here's why that's meaningful.

This is a premium device with a starting price of about $2,000 -- versions with more memory and other advanced features are even more expensive. At the lowest price, and with six million devices sold and perhaps as many as 10 million, that's between $12 billion and $20 billion.

The lower end of that range represents 22% of total iPhone revenue in the company's latest quarterly update. Of course, iPhone Duo sales will somewhat cannibalize other models' sales. But note that the iPhone 18 Pro -- the cheapest one available right now -- has a starting price of roughly $1,200, or $800 less than the cheapest iPhone Duo model.

Even assuming every base iPhone Duo sale is a foregone iPhone 18 Pro sale, that could add $4.8 billion to Apple's revenue through the end of the year.

However, there is a decent chance that Apple will successfully attract at least some users switching from other smartphone brands. That highlights the company's long-term strategy. Apple doesn't necessarily seek to be first to market. One of the tech leader's biggest strengths is releasing better versions of existing devices. That's what it did with the iPhone, changing the smartphone market forever. It did the same with several other products, including its Apple Watch and AirPods. The iPhone Duo is the company's latest attempt.

In recent quarters, Apple's revenue growth has been much higher than its average over the past three years.

AAPL Revenue (Quarterly YoY Growth) data by YCharts

The iPhone Duo could help the company maintain that trend. The company could also profit from a long-term opportunity in this niche. Foldable smartphones account for only 2% of the smartphone market. Apple could expand that total, and as it does, the company's revenue and earnings could grow faster than they otherwise would. The iPhone Duo could, indeed, be Apple's best growth catalyst in years. The excitement surrounding this device is arguably the most we have seen from a new iPhone launch in a very long time.

What's next for Apple?

The iPhone Duo launch wasn't a flawless success for Apple. The company is dealing with supply constraints, and there have apparently been rare instances of cracked screens. These problems should do little to slow Apple's momentum, in my view. The company will likely seek to increase capacity to meet demand for the iPhone Duo, and the tech giant will offer replacements to users whose screens cracked. Meanwhile, Apple's entire business remains healthy.

It has launched several other new devices and continues to integrate artificial intelligence (AI) capabilities into its products to improve the user experience. These efforts could lead to a growing installed base and an expanding number of paid subscriptions in the company's services segment, which will help boost profits and margins in the long run.

Apple's strategy hasn't changed, and it still looks likely to support consistent financial results over the long term. And there are other great reasons to buy the stock, including management's willingness to reward shareholders through dividends and share buybacks. The bottom line: Apple remains a great stock to buy and hold, and the brand-new iPhone Duo is just one of many reasons.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.