Apple’s iPhone Duo is becoming the new growth engine predicted by Jim Cramer. In the days leading up to Duo pre-orders this Friday, Jim said multiple times that Apple’s first foldable device would be a huge hit. He also called on investors to sell their stocks. So far, early signs suggest very strong demand for Duo. As of Monday morning, the club checked Apple’s website and found that the earliest expected delivery date for the Duo in Night Sky color with 512GB of storage was January 25th, more than three months away. The phone will be available in stores this Friday. This early demand is an encouraging signal for gyms who have been impressed with the Duo since previewing it last month at Apple’s flagship store in New York and can’t wait to purchase it. “I was shocked when I played with it and all I could think about was watching NFL Sunday Ticket on Duo,” Jim said Monday. “This screen is innovative and seamless. The form factor is perfect for viewing.” Wall Street is also taking note. Morgan Stanley reported late Friday that the average global pre-order lead time was a record 14 weeks. “[This is]the longest iPhone model we have tracked in the past 10 years,” analysts wrote in a note to clients. The milestone highlights both early demand and limited supply, analysts said. In contrast, lead times for iPhone 18 Pro models are getting shorter each year, according to Morgan Stanley. As the club’s portfolio director Jeff Marks pointed out on Friday, the duo’s hot start is a good sign because, as Morgan Stanley analysts pointed out, 18 isn’t that strong. Jeff said, “Remember, the reason 18 wasn’t as robust is because people were waiting for Duo.” Melius Research released a follow-up report on Monday, citing Duo as one of several reasons why Apple’s rise to a $5 trillion valuation could continue. Last Wednesday, the stock closed above that threshold for the first time, becoming the second U.S. company to do so. My first club name was Nvidia. Both gyms are designated as “Owned and Do Not Replace.” “We have owned and used this (Duo) and expect it to be a long-term hit, especially as the camera continues to improve in future models,” Melius analyst Ben Reitzes said in a note to clients on Monday. Reitz and his team estimate that Apple could sell at least 15 million Duo units in 2027 at an average selling price of $2,000 to $3,200, generating about $40 billion in revenue, at least half of which could come from increased revenue. Reitz added: “In the short term, the[Duo]shortage may even help sales of the iPhone 18 Pro and Max models.” Beyond the Duo, Melius believes there is an opportunity for Apple to benefit from higher selling prices across its broader iPhone lineup. “As the shortage eases, we see a path for iPhone sales to grow by nearly 20%, which could add approximately (50 cents) to Apple’s (fiscal year 2027) earnings per share and keep the multiple unchanged, if not higher.” Reitz noted that his forecast is roughly double the Wall Street consensus for iPhone sales growth of 10% in fiscal year 2027. Melius maintained a Buy rating and $370 price target, but said, “This has room for further upside upon the November 2nd earnings release.” Apple is scheduled to report its fourth quarter of fiscal 2026 that evening. Investors, like us, will be curious to hear comments on Apple’s upcoming holiday quarter, the first period of its 2027 fiscal year. AAPL YTD Mountain Apple YTD After hitting a 52-week low of about $243 per share on January 20, Apple stock has risen more than 41% to current levels of around $342 per share, just below Friday’s all-time high closing price. Apple stock is up nearly 26% year-to-date. Much of that rise was due to former CEO Tim Cook taking over the reins, but the stock has been rising since John Tarnas took over on September 1. While the current iPhone rollout began under Cook, Tarnas was right there as Apple’s head of hardware. Tarnas also has the advantage of retaining Mr. Cook as executive chairman. (Jim Cramer’s Charitable Trust is long AAPL. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
