Apple officially unveiled its first foldable smartphone, the iPhone Duo, on Wednesday, priced at $1,999. This marks a significant move into a market previously dominated by Samsung and Chinese companies like Huawei. Analysts believe Apple's entry could be the catalyst needed to bring foldable phones into the mainstream, similar to its impact on smartwatches and wireless earbuds.
The launch event was led by new CEO John Ternus, marking the most notable overhaul of Apple's flagship product since the iPhone X in 2017. The iPhone currently accounts for a substantial portion of Apple's revenue, bringing in $209.6 billion, or just over half of its total sales, in the most recent fiscal year. Ternus, previously the hardware chief, is now tasked with navigating this major product shift and addressing the company's performance in the AI race with Siri.
The foldable iPhone is expected to have a starting price between $1,999 and $2,500, with some analysts predicting a price point above $2,500. Morgan Stanley analysts, for instance, projected shipments of approximately 6.5 million units in Apple's fiscal first quarter, translating to roughly $14 billion in sales, or about 16 percent of the total iPhone revenue expected for that quarter. This new device, which folds like a book, represents the most significant design change to the iPhone in years.
Despite a recent surge in Apple's stock, which saw a 15 percent rally since late June driven by excitement over the new product lineup, the stock remains about 7 percent below its all-time high set in July. Investors and analysts are keenly watching the pricing strategy for the foldable iPhone, as it will be crucial in balancing customer demand with maintaining profit margins amid rising memory costs. JPMorgan analyst Samik Chatterjee highlighted pricing as the key unknown, noting that investors are looking for increases that balance price elasticity and gross margins.
