Apple's new CEO, John Ternus, is set to unveil the company's first foldable iPhone, with analysts expecting it to cost upward of $2,000, potentially reaching $2,500. This launch marks a significant moment for Apple, as it aims to differentiate itself in the competitive smartphone market and leverage AI advancements, particularly with its Siri virtual assistant, to appeal to consumers.
Analysts project the foldable iPhone could generate more than $45 billion in revenue by the end of 2027 and contribute approximately $14 billion in revenue during the December quarter alone. Morgan Stanley estimates initial demand will outstrip supply, with 7 to 8 million units produced in the second half of 2026, increasing to 20 million over the product's first cycle. This new device is seen as Apple's most consequential launch since the iPhone X.
The foldable phone market currently constitutes about 2% of global smartphone sales, and its growth has slowed since Huawei and Samsung introduced their products in 2019. However, Apple's entry is expected to revitalize interest, making foldables the only segment of the smartphone market projected to grow in 2026. IDC anticipates 12% year-on-year growth in global foldable sales, with Apple capturing a 40% share by 2027. UBS expects Apple to sell at least 10 million foldables in the first year.
The new foldable iPhone is also expected to feature improvements in durability, such as sturdier hinges and reduced screen creasing, addressing common concerns with previous foldable models. These advancements, coupled with the integration of on-device AI performance through the new A20 Pro chips and a transition to TSMC's 2nm process, are crucial for its success. The device is predicted to perform particularly well in China, a market where Huawei has seen success with foldable phones and Apple has been regaining market share.
The launch comes amidst rising component costs, particularly for NAND and DRAM, which are anticipated to drive price increases across the entire iPhone range, with Pro models potentially seeing hikes of over $200. This pricing strategy will test customer tolerance but also reflects Apple's focus on higher-margin devices. John Ternus's leadership in this product launch signifies a new era for Apple, as the company seeks to innovate beyond its current form factors to stimulate demand in a saturated smartphone market.
