Apple Inc. (NASDAQ:AAPL) is reportedly planning to launch foldable iPhones and ultralight devices by 2026.

What Happened: Apple is reportedly working on a thinner iPhone model, expected to be more affordable than the Pro versions.

This device will feature a simplified camera system to cut costs, reported The Wall Street Journal on Sunday, citing people familiar with the matter.

The tech giant is also developing two foldable devices: a larger one that unfolds to a 19-inch screen, and a smaller foldable iPhone, the sources noted.

Challenges in hinge and display cover technology have delayed these foldable designs, but Apple is pushing for a 2026 release.

While Apple initially planned to launch the larger foldable device first to assess market reception, it now seems that the foldable iPhone will likely debut earlier.

Executives are targeting a 2026 release for the foldable iPhone, though an additional year may be required to resolve ongoing technical issues, the report noted, citing sources.

Meanwhile, the ultrathin iPhone is expected to cater to consumers who prioritize a sleek design over some of the advanced features found in the Pro models.

Analyst Jeff Pu from Haitong International Securities noted that current foldable phones do not meet Apple's standards for thinness, lightness, and energy efficiency.

Apple did not immediately respond to Benzinga's request for comments.

Why It Matters: This move aims to boost consumer interest amid stagnant smartphone sales. Apple's iPhone business, which contributes significantly to its revenue, has seen minimal growth. The company is seeking new ways to accelerate growth.

Earlier in August, it was reported that Apple is working on a thinner version of the iPhone 17, dubbed the "Air," which could potentially reignite consumer interest in its flagship product. The device could be a significant redesign akin to the iPhone X.

Apple's smartphone sales saw a slight 0.3% decline year-over-year in the third quarter, yet demand for the iPhone 16 series remained steady compared to previous models, according to an IDC report. This performance enabled Apple to regain the second spot in China's smartphone market, securing a 15.6% share.

In October, Apple reported fiscal fourth-quarter revenue of $94.9 billion, surpassing analyst projections of $94.56 billion. iPhone sales contributed $46.22 billion, up from $43.8 billion in the same period last year.

On Sunday, Mark Gurman in his latest installment of the weekly "Power On" newsletter reported that Apple is exploring the tablet market with a potential 18.8-inch foldable iPad by 2028.

This device is expected to offer a seamless experience, similar to using two iPad Pros side-by-side, and may incorporate features from both Macs and iPads.

Price Action: Apple's stock edged up 0.069% on Friday, finishing the day at $248.13. Year-to-date, the company's shares have increased by 33.66%.

The latest price targets from Morgan Stanley, Needham, and Wedbush suggest an average target of $277.67, indicating a potential upside of 11.96%, according to Benzinga Pro data.