IPhone 18, iPhone Fold Rumours: Apple's New Phones and AI Tech To Spark 'Massive Upgrade' Cycle

Apple could be preparing for its biggest smartphone refresh in years. Analysts expect the upcoming iPhone 18 and iPhone Fold to spark what they call a 'massive upgrade' cycle starting in 2026. The prediction comes after mixed but improving sales for the iPhone 17 series, launched last month.

Morgan Stanley analysts believe Apple is entering a 'powerful growth phase' driven by new AI-powered technology — known as Apple Intelligence — and the company's first foldable phone. The shift marks a major milestone for Apple, which has yet to release a flexible display device, unlike competitors Samsung or Huawei.

'Massive Upgrade' Cycle in 2026?

Apple's upgrade waves often follow major design changes or headline features. Earlier peaks came with the iPhone 6 and iPhone X, while recent models saw smaller jumps. In March 2025, Morgan Stanley cut Apple's share target to $252 (£187.97) after weak early demand for the iPhone 17, as per Vietnam Net.

Months later, the bank reversed its view, saying real-world sales had exceeded forecasts. Supply-chain data suggested Apple would raise 2025 output to over 90 million units, mostly for Pro models. That rebound has set the stage for a 2026 boom when many users with older devices could be ready to upgrade.

Experts Point to Two Key Factors

Foldable Innovation

The iPhone Fold is expected to be Apple's first flexible smartphone. Analysts think the design change alone could trigger widespread replacements. Reports indicate Apple will launch six models in 2026: iPhone 17e, iPhone 18, iPhone Air, iPhone Fold, iPhone 18 Pro, and iPhone 18 Pro Max.

Well-known analyst Ming-Chi Kuo said Apple has worked on foldable screens for years, focusing on hinge strength and durability. The company's cautious approach may help avoid issues seen in early foldable phones from rivals.

Integration of Apple Intelligence

The second driver is Apple's AI system, Apple Intelligence, designed to personalise apps and automate tasks. The technology is expected to become central in the iPhone 18 lineup.

Morgan Stanley analysts noted that Apple's next growth cycle depends on how practical users find both the foldable design and these AI features in daily use.

iPhone 18 and iPhone Fold Could Bring More Sales

Morgan Stanley now predicts Apple could sell around 243 million iPhones in 2026, up from 220 million in 2025. If AI and foldable designs perform strongly, sales might reach 270 million units, lifting Apple's share price target to $376 (£280.49).

The firm credited Apple's strong supply-chain management and steady partnerships — especially its ongoing deal with Google Search — for this renewed optimism. Despite global economic uncertainty, Apple's production facilities in India and Vietnam remain stable.

According to Hindustan Times, the base iPhone 18 might not appear until early 2027, with the 2026 lineup focused on premium models, including the iPhone Fold and iPhone 18 Pro. The phones will likely run on the new A20 Bionic chip, improving AI processing speeds. Apple is also expected to keep the 18-megapixel Centre Stage camera introduced on the iPhone 17.

If these forecasts hold true, Apple could see its strongest upgrade cycle since 2017. With artificial intelligence at its core and a new foldable form, the iPhone 18 and iPhone Fold may redefine Apple's position in the global smartphone market once more.