Apple (AAPL) is gearing up to make major changes to its iPhone lineup and potentially other products, according to the Wall Street Journal. Starting next year, the company aims to release a thinner iPhone, with a design slimmer than the current 8-millimeter models. This new device is expected to be priced lower than the previous iPhone Pro models and will include a simplified camera system to cut costs. With these changes, the company aims to boost demand for its product offerings and drive future growth.
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In addition to this, Apple is developing two foldable devices, a larger one that unfolds into a 19-inch laptop-sized screen and a smaller model that works as a foldable iPhone.
These devices have been under development for years, but challenges with the folding hinge have slowed down their release. It is worth highlighting that Apple is aiming to launch the foldable iPhone in 2026.
AAPL Seeks Growth Beyond the iPhone
Apple is heavily reliant on its iPhone business, as it makes up more than 50% of the overall sales. However, the segment has witnessed a slowdown, with Fiscal 2024 revenue growing less than 1%. Thus, the company is seeking to diversify its product portfolio and explore new growth opportunities.
The launch of the Vision Pro, a high-end virtual reality headset, earlier this year was a significant step in this direction. However, the headset faced challenges due to its high price of $3,499 and limited app ecosystem.
To address these issues, Apple is considering a more affordable version of the Vision Pro that could be powered by an iPhone. This could make the device more accessible to a wider audience and boost its adoption.
What Is the Price Target for AAPL?
Turning to Wall Street, AAPL has a Moderate Buy consensus rating based on 20 Buys, nine Holds, and two Sells assigned in the last three months. At $243.20, the average Apple price target implies a 1.99% downside potential. Shares of the company have gained about 30% year-to-date.
