Deepwater Asset Management Managing Partner Gene Munster stated that consensus estimates for Apple Inc (NASDAQ: AAPL) iPhone revenue in fiscal 2027 are likely too low by 10%. The analyst highlighted stronger-than-expected demand for premium models and the upcoming launch of the foldable Duo smartphone as key drivers.

Premium Demand Outpaces Expectations

Apple has altered its release schedule for this year, launching the iPhone 18 Pro and iPhone 18 Pro Max months before the base model. Munster noted that lead times for these premium devices are 15% longer than a year ago. This metric is tracked daily across eight countries, including the United States, United Kingdom, China, Canada, Switzerland, France, Japan, and Germany.

The extended lead times suggest buyers are opting for the higher-priced Pro models rather than waiting for the base iPhone release in spring 2027. Munster had initially expected shorter lead times this year, indicating that the shift toward premium purchases is accelerating.

Duo Foldable Impact on Revenue

The foldable Duo smartphone will begin preorders on Oct. 16, with deliveries starting Oct. 23. Munster views early demand for the Duo as a critical indicator of whether consumers continue prioritizing premium devices over the base model.

Consensus estimates project approximately 4.5 million Duo sales in fiscal 2026. However, Munster argued that these figures may not fully account for the device’s $2,100 average selling price. He estimated that the Duo could capture 35% market share in its first year and constitute around 8% of total iPhone units next year.

Despite potential challenges in converting existing foldable users from rival companies, Munster believes a third of Pro Max users could switch to the Duo. This migration could boost iPhone revenue by 10% due to higher average selling prices.

What the Numbers Show

Munster estimates that while the Duo will represent only 8% of iPhone units next year, it will account for 14% of iPhone revenue. This divergence highlights the significant revenue contribution of the high-ASP foldable device relative to its volume share.

Stock Performance

Apple stock rose 0.1% to $336.48 on Monday. The shares trade within a 52-week range of $243.42 to $344.57. Year-to-date in 2026, Apple stock is up 24.2%.

Apple Inc. has agreed to pay $250,000,000 to settle a class action lawsuit alleging that consumers did not receive promised Apple Intelligence-powered Siri features on certain iPhone models. The settlement resolves claims related to devices purchased between June 10, 2024, and March 29, 2025.

The case, titled Landsheft v. Apple, Inc., is pending in the United States District Court for the Northern District of California in San Jose. Plaintiffs alleged that buyers of eligible devices expected specific AI assistant features that were not delivered during the class period. Apple denies any wrongdoing but has agreed to fund the settlement to resolve the litigation.

Eligibility and Claims

Settlement Class Members include all individuals who purchased an iPhone 16, iPhone 16e, iPhone 16 Plus, iPhone 16 Pro, iPhone 16 Pro Max, iPhone 15 Pro, or iPhone 15 Pro Max in the United States for purposes other than resale. To be eligible, purchasers must have bought the device between June 10, 2024, and March 29, 2025, and reside in the United States.

Eligible members may receive a cash payment from the $250,000,000 settlement fund. The fund will also cover court-approved costs and fees. Individuals must submit a complete claim form online or by mail by December 21, 2026, to receive payment. Those who do nothing will not receive a cash payment but will remain bound by the settlement terms, forfeiting the right to sue Apple for these specific issues.

Options for Class Members

Class members have three primary options before the deadline:

• Claim Payment: Submit a claim form to receive a portion of the settlement fund.
• Exclude Yourself: Opt out of the settlement to retain the right to sue Apple independently for the covered issues. Excluded members will not receive any settlement benefits.
• Object: Voice disagreement with the settlement terms without opting out. The court will consider objections during the fairness hearing, but objecting does not change the settlement terms or guarantee approval.

What the Numbers Show

The $250,000,000 settlement amount represents a significant financial outlay for Apple to resolve allegations concerning software feature delivery rather than hardware defects. This figure covers all eligible claims across multiple iPhone generations (iPhone 15 Pro series and iPhone 16 series), suggesting a broad scope of affected users. The allocation of funds must also cover legal fees and administrative costs, meaning the net amount available for individual claimants will be lower than the gross settlement value.

Next Steps

The court will hold a Final Fairness Hearing on February 24, 2027, at 9:00 am at the United States District Court in San Jose. At this hearing, the judge will decide whether to approve the settlement and the request for attorneys' fees and costs. If the court rejects the settlement, no benefits will be paid, and the lawsuit will continue.

For more information, class members can visit the settlement website or contact the Settlement Administrator.