Published with permission from CAGR ValueApple, Inc. (NASDAQ:AAPL) is working with its Asian partners to launch a ‘foldable’ iPhone within the next two years according to Bank of America Merril Lynch analyst Wamsi Mohan. According to reports early on Friday, Mohan wrote in a note to investors saying that “We expect the iPhones this fall to be largely unchanged for the OLED versions although size changes have proved to be a catalyst in the past,” CNBC reported on Friday Morning. In the note, Mohan added that “Our checks also suggest that Apple is working with suppliers on a foldable phone (that potentially could double up as a tablet) for launch in 2020.” Reports indicate that the ‘foldable’ iPhone would be a two-in-one device that is convertible into a tablet. This comes amid news that Apple has been working on cheaper iPad to be announced next week along with an educational software as it seeks to grow its services unit. There was no major reaction in terms of stock price performance following the news with shares of Apple dropping 1.4% from Thursday’s closing price. Apple has experienced a subdued revenue growth over the last few years while net income has also remained tepid. However, it continues to enjoy strong profitability margins and these have been key to boosting its stock price, which is up 153% over the last five years. An introduction of a cheaper iPad alongside an education software next week could go along way towards boosting its services revenue, but it might have a negative impact on its strongest performance catalyst, the margins. The company is also reportedly working on a cheaper MacBook, as it seeks to fight of rivalry from the likes of Microsoft Corporation (NASDAQ:MSFT) Surface Laptops and Alphabet, Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL)’s Chromebooks. The company still enjoys a massive market share in mobile computing devices in the U.S. with over 17%, but that might not be enough to save it from being overtaken by Amazon.com, Inc. (NASDAQ:AMZN) in becoming the most valuable publicly listed company.Article first Appeared on CAGR Value. Disclosure: I have no position in any stock mentioned in this article.