Sun Jan 18 11:50:00 UTC 2026: ## Apple’s 2026 iPhone Strategy Hinges on AI and Foldable Devices, Analyst Predicts

The Story: Analyst Jeff Pu’s latest investor note outlines Apple’s anticipated strategy for its 2026 iPhone lineup, predicting a market share increase despite an expected contraction in the broader smartphone market. The note focuses on the iPhone 18 series, including a foldable model with Touch ID, and details hardware upgrades geared towards on-device AI processing. Pu expects Apple to ship 250 million iPhones in 2026, a 2% year-over-year increase, boosting its market share to 21%.

Key Points:

  • Analyst Jeff Pu forecasts Apple’s iPhone shipments to reach 250 million units in 2026.
  • Apple’s market share is projected to rise from 19% in 2024 to 21% in 2026.
  • The iPhone 18 lineup will include a foldable iPhone model featuring Touch ID.
  • The foldable iPhone is expected to have 7.8″ (internal) and 5.3″ (external) displays.
  • The iPhone 18 series will utilize N2 silicon, WMCM packaging, and 12GB LPDDR5 memory to support on-device AI.
  • Apple is raising its 1Q26 build forecast for the iPhone 17 lineup to 59 million units, up from 56 million.

Key Takeaways:

  • Apple is positioning itself to buck the trend of a shrinking smartphone market by focusing on premium features and AI capabilities.
  • The introduction of a foldable iPhone with Touch ID signals a strategic diversification in Apple’s product line.
  • Investment in advanced hardware suggests Apple is prioritizing on-device AI processing to enhance user experience, potentially through an upgraded Siri.
  • The resilience of the iPhone 17 demand shows continued user interest in Apple products.
  • Analyst Jeff Pu has a positive outlook on Apple’s growth trajectory over the next few years.

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