Apple Nears Nvidia's Crown as Foldable iPhone Sparks Demand

Apple's stock surged to an all-time high of $351.73 during trading on Friday, closing at $347.73, a slight 0.14% decrease. This brought the company's market value to approximately $5.07 trillion, closely trailing Nvidia's market cap of around $5.1 trillion. Since early October, Apple's stock has climbed about 4%, while Nvidia has lost approximately 7% amid investor concerns about the financing of massive AI investments. Apple briefly surpassed Nvidia in July before returning to second place.

The immediate catalyst for Apple's rise is the "iPhone Duo," its first foldable iPhone, which launched on October 23rd following a week of pre-orders. Demand for the device became apparent quickly, with pre-orders opening on October 16th. Within about 30 minutes, Apple's US website showed a shipping date of January 25th for all colors and storage options. In-store inventory was limited for walk-in customers, and purchases were capped at two devices per person in the US. In markets like China, Japan, India, France, and South Korea, in-store pickup required a prior reservation. Resale markets are already listing the device for more than double its official price.

The "iPhone Duo" features a 5.4-inch external screen when closed and a 7.6-inch internal screen when open. It is powered by the A20 Pro chip, has a titanium body, and dual batteries. Pricing starts at $1,999 for the 256GB version, going up to $3,199 for the 2TB model. In Israel, the official price begins at 8,199 shekels.

It remains unclear how much of the shortage is due to demand versus limited production. Asian reports suggest Apple's supply chain initially produced only a few hundred units daily, a significantly slower pace than standard iPhones, though production targets were reportedly increased later. The device is available in over 70 countries, with an additional 28 countries added on October 30th.

For investors, the "iPhone Duo" signifies more than just quarterly sales figures. iPhones account for roughly half of Apple's sales, generating about $209.6 billion in fiscal year 2025. A device with a price nearly double that of a basic Pro model could increase the average selling price of all iPhones. This marks a shift towards the high-end market, contrasting with the company's recent focus on more affordable models in international markets.

Apple is scheduled to release its quarterly earnings report for the September quarter on November 2nd. Analysts anticipate revenues of around $113.4 billion, an 11% increase from the previous year's $102.5 billion, and earnings per share of $1.98, up from $1.85. Apple has exceeded analyst profit expectations for the past four quarters. The options market is pricing in an approximate 4.8% stock movement in either direction following the report. The "iPhone Duo" will have minimal impact on these earnings as pre-orders began after the quarter's end. Attention will likely focus on the holiday quarter forecast and management's comments on production rates. The services segment, including the App Store, cloud, and payments, which generated about $109 billion in fiscal year 2025 with a 75% gross profit margin, will also be closely watched. Despite a 43% rise from its January low, the stock is considered expensive, trading at a P/E ratio of about 40 based on the last 12 months' earnings, with the average analyst price target below the current trading price. Nevertheless, most analysts maintain a buy recommendation. If the earnings report and forecast confirm sustained demand for the high-priced foldable iPhone, Apple could reclaim the top spot in market valuation.