Seeking to strengthen its position in the global smartphone market, Apple AAPL reportedly plans to introduce at least five new iPhone models between the second half of 2026 and the first half of 2027, while also ramping up its push into foldable devices. The news helped lift Apple shares about 0.5% in pre-market trading on July 2.

AAPL climbed 1.73% on Wednesday, extending its gains to roughly 7.1% over the past five trading days. The stock has risen about 8.1% over the past six months and nearly 42.4% over the past year.

As reported by Nikkei Asia on Thursday and as quoted on CNBC, the U.S. tech giant has asked its suppliers to prepare for the production of about 10 million foldable iPhones this year, compared with an earlier estimate of 7-8 million units. The higher production target signals the company's growing confidence in demand for its first foldable smartphone.

The ambitious product rollout comes even as the smartphone industry continues to grapple with component supply constraints.

Apple's Big Bet Collides With Supply Constraints

Per the report by Nikkei Asia, Apple has lined up components for approximately 80 million smartphones expected to be launched in the second half of 2026, easing some concerns over component procurement. The report further stated that Apple's smartphone production is projected to surpass 220 million units in 2026.

Even as AI-driven demand continues to strain component supplies across the industry, Apple's scale and strong procurement capabilities give it a competitive edge in sourcing memory and other critical components. This positions the company to navigate supply shortages more effectively than its Chinese rivals, potentially enabling it to gain market share.

Apple is reportedly looking to diversify its supplier base as memory shortages continue to disrupt production across the consumer electronics sector.

Into AAPL’s Stock Outlook

Apple currently has an average brokerage recommendation (ABR) of 1.91 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations made by 43 brokerage firms.

Of the 43 recommendations deriving the current ABR, 23 are Strong Buy and three are Buy. Strong Buy and Buy, respectively, account for 53.49% and 6.98% of all recommendations. Strong Buy and Buy recommendations remain unchanged from a month ago, indicating that the majority of the analysts remain bullish.

Based on short-term price targets offered by 36 analysts, the average price target for Apple comes to $314.44, representing an increase of 6.81% from its current level, with the forecasts ranging from a low of $235.00 to a high of $400.00. Currently, AAPL stock is priced at $294.38 (as of market close on July 1) and has a Zacks Rank #3 (Hold), along with a Momentum Score of A.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ETFs to Consider

Here, we have highlighted ETFs with exposure to Apple.

Global X PureCap MSCI Information Technology ETF GXPT has an exposure of 18.24%.

Vanguard Information Technology ETF VGT has an exposure of 15.25%.

Fidelity MSCI Information Technology Index ETF FTEC has an exposure of 14.49%.

Vanguard Mega Cap Growth ETF MGK has an exposure of 12.49%.

Vanguard Growth ETF VUG has an exposure of 12.31%.

State Street Technology Select Sector SPDR ETF XLK has an exposure of 11.59%.

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Apple Inc. (AAPL): Free Stock Analysis Report

State Street Technology Select Sector SPDR ETF (XLK): ETF Research Reports

Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports

Vanguard Information Technology Index Fund ETF Shares (VGT): ETF Research Reports

Vanguard Growth Index Fund ETF Shares (VUG): ETF Research Reports

Vanguard Mega Cap Growth Index Fund ETF Shares (MGK): ETF Research Reports

Global X PureCap MSCI Information Technology ETF (GXPT): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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