This New Product Launch Could Spark Apple's Sales Next Year

Key Points

• Apple could be launching the iPhone Fold as early as next year.

• The company is reportedly working on fixing a big problem with foldable phones: a crease in the middle.

• A foldable phone plus the launch of more artificial intelligence features could be just what's needed to boost its sales.

• 10 stocks we like better than Apple ›

A big problem for Apple (NASDAQ: AAPL) these days is a lack of growth. Consumers simply aren't seeing a compelling reason to upgrade their iPhones. With a rollout of some artificial intelligence (AI) features delayed to 2026, not only have iPhone sales been unimpressive, but investors have also been punishing the stock; it's down 17% this year (returns as of July 14).

But there is hope that could change, potentially as early as next year. While having greater AI-powered features could make iPhones attractive buys next year and result in more consumers upgrading their phones, that's not the only reason why the company's sales might soon get a boost.

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Image source: Getty Images.

The iPhone Fold could be coming next year

Apple is reportedly working on a foldable version of its iPhone that could be available as early as next year. The iPhone Fold may not be out until the second half of 2026, but if it comes to market, it may just be the catalyst that Apple needs to jump-start its top line.

Foldable phones aren't new, but what Apple hopes to do is to fix a common, frustrating issue with them: a crease in the middle. That's a reason many consumers don't opt for foldable phones, because not only are they usually more expensive than regular phones, having a crease in the middle can get in the way of watching videos or viewing pictures clearly.

If Apple is able to solve this issue plus have new AI capabilities ready to go for the phone's launch, the company could have an exciting new product that not only boosts its sales but that also gets investors excited about the stock once again. And that's because the company desperately needs something to strengthen its sluggish top line.

Apple's sales growth has been underwhelming

Over the past six months, Apple's net sales have totaled $219.7 billion. While that's a staggering amount, it's only an increase of 4% from the same period last year. And while product-related revenue takes up the lion's share at $166.7 billion, it has risen by a rate of just 2%.

Apple's growth rate has actually been improving of late, but that highlights just how mightily the company has been struggling in recent years to consistently grow its top line .

AAPL Operating Revenue (Quarterly YoY Growth) data by YCharts

When you consider that the consumer goods stock trades at around 33 times its trailing earnings, that makes it difficult to justify investing in the company; the average S&P 500 index stock trades at a multiple of less than 25. Apple has been slow on innovation in recent years, and with underwhelming growth, it hasn't been a terribly attractive buy.

Is Apple stock a buy today?

Given Apple's struggles, a slowdown in discretionary spending, and the uncertainty that tariffs and trade wars pose on its business, I wouldn't buy the stock just yet, simply because it still looks too expensive. I'd want more of a margin of safety with the stock to ensure that there's a decent buffer in the event that the business encounters more challenges ahead.

Although Apple stock is down this year, it's still not near its 52-week low of $169.21, and it doesn't look cheap with respect to earnings. I wouldn't buy it right now, but I do think it's worth keeping Apple on a watch list because it may go on more of a decline in the weeks and months ahead, given that the headwinds pulling its shares down this year are still a problem for the business.

At a lower multiple (e.g. less than 30 times trailing earnings), it could make sense to buy the stock. For now, however, I'd stay on the sidelines and take a wait-and-see approach with Apple.

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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.