Apple's rally raises stakes for new CEO's foldable iPhone launch

Apple Inc.'s $570 billion summer rally has raised expectations for new CEO John Ternus ahead of Wednesday's foldable iPhone unveiling, with the stock up 15% since June 25 but still 7% below its July 28 all-time high. The foldable iPhone, projected to start at $2,300-$2,500, is expected to generate about $14 billion in sales in the fiscal first quarter. Investors are watching pricing decisions closely, as Apple must balance rising memory costs against maintaining profit margins, with shares trading at 33 times forward earnings versus a 10-year average of 23. Apple's revenue is forecast to rise 15% in fiscal 2026, the fastest pace since 2021, though earnings growth is slowing to 6% in the current quarter. The stock has fallen on five of the past eight iPhone launch days, but averages a 10% gain in the six months following debuts.