Apple (AAPL -0.03%) has outperformed the S&P 500 in 2026, up 28% year to date as of Oct. 22, 2026, compared with the index's 12% return. Apple's first folding phone, the iPhone Duo, looks like a success. Interest in the new model could help the stock outperform again in 2027. Here's why.
Online orders for the $1,999 Duo sold out quickly, pushing some deliveries to January, Reuters reported. Apple called preorder demand "extraordinary" ahead of the Oct. 23 release date. This is incredible demand for a consumer spending environment anchored by persistent inflation and elevated interest rates.
AAPL Apple
NASDAQ · As of 10:07 AM ET 10/27/26
That demand reinforces the brand. Apple has more than 2.5 billion active devices in people's hands and over 1.5 billion paid subscriptions.
Investors have historically paid a premium for Apple's steady financials, services growth, and brand power. In the fiscal third quarter (ended June 27, 2026), revenue climbed 16% year over year to $109 billion, with roughly half of revenue from the iPhone, and management guided to 9%-11% year-over-year growth for the quarter that ended in September.
There's another catalyst: Apple's new Siri AI, released in beta in September, offering a deeper chat experience for iPhone users. Siri's chat window will leverage the Duo's larger screen width, potentially becoming another sales driver for the Duo over the next year.
Image source: Getty Images.
Softer iPhone 18 Pro demand does pose a risk, but it may just reflect more people wanting to buy the Duo. The stock is also not cheap, trading at about 36 times analysts' fiscal 2027 earnings estimate. I believe Apple's brand power deserves a premium, but it still trades at roughly twice the S&P 500's forward earnings multiple.
Still, if the Duo attracts more customers to Apple's ecosystem, growth could beat the fiscal 2027 consensus earnings growth estimate of 8%, especially since strong iPhone sales could spur higher spending on high-margin services, boosting earnings. I believe strong demand for the Duo could maintain positive sentiment around the stock, setting up another year of outperformance in 2027.
