Apple is preparing to unveil its first foldable iPhone as new CEO John Ternus takes control of the company. With an estimated starting price of $2,200 and higher prices expected across the Pro lineup, the launch will test Apple’s innovation credentials, pricing power and ability to protect its enormous profit margins.
Apple’s Biggest Product Event in Years
Apple’s Wednesday product event is shaping up to be its most consequential launch since the Apple Watch debuted more than a decade ago.
The company is expected to introduce its first foldable iPhone, a pocket-sized device that opens into an almost tablet-like display. The larger screen is expected to support multiple apps at once, giving Apple a new way to connect the iPhone and iPad experiences.
The estimated starting price could reach $2,200, according to IDC. Higher-storage configurations could cost considerably more.
Apple is also expected to unveil updated iPhone Pro models, Apple Watches, Macs, AirPods and an Apple TV device. However, the base-model iPhone and second-generation iPhone Air reportedly will wait until next year.
That decision could leave customers seeking the newest iPhone with a choice between premium Pro models and the dramatically more expensive foldable device.
Apple may also raise Pro prices by as much as $200. Memory and storage chip costs have reportedly increased fivefold since last fall, putting pressure on the company to pass more of those expenses to consumers.
Every major detail remains an expectation until Apple makes the products, specifications and prices official during the event.
John Ternus Inherits His First Defining Moment
The device will share the spotlight with John Ternus, who succeeded Tim Cook as Apple’s chief executive last week.
Ternus is only Apple’s third CEO since Steve Jobs returned to the company in 1997. He previously led Apple’s hardware engineering organization, placing him at the center of the company’s most important devices and its transition to internally designed chips for Mac computers.
He also oversaw the team responsible for developing the foldable iPhone.
That makes Wednesday’s presentation unusually significant. Ternus will be introducing a product closely connected to his previous responsibilities while attempting to define the next stage of Apple’s corporate identity.
Tim Cook’s tenure produced extraordinary financial results, a massive services operation and one of the strongest consumer ecosystems ever built. Yet Apple has faced persistent criticism that its recent products have refined existing categories instead of creating new ones.
The foldable iPhone gives Ternus an immediate opportunity to change that perception.
Investors will therefore be evaluating two launches at once: a new smartphone format and a new era of leadership.
The Real Story Is Apple’s Pricing Strategy
The foldable design will generate the headlines, but Apple’s broader pricing decisions may have greater financial consequences.
The company appears to be reorganizing its iPhone release schedule around premium devices. If the least expensive new models do not arrive until next year, customers who want the latest hardware this fall will have fewer lower-priced options.
That could lift Apple’s average selling price even if the foldable remains a relatively small-volume product.
Installment plans and carrier promotions will be essential to the strategy. A $2,200 price looks extreme as a single purchase. Spread across 24 or 36 monthly payments, the increase may feel more manageable to affluent consumers and devoted Apple customers.
This is one of Apple’s greatest financial advantages. The company controls a deeply integrated ecosystem of hardware, software, services, accessories and customer data. Leaving that ecosystem can create friction, especially for households that own multiple Apple devices.
Apple is wagering that this loyalty will allow it to move prices higher without causing a severe decline in demand.
The risk is that consumers already bought heavily into last year’s iPhone 17 lineup. A dramatic price increase could encourage many owners to extend their replacement cycles, particularly if the practical advantages of the foldable model fail to justify its cost.
Three Financial Tests for Apple Investors
1. Can Higher Prices Outrun Higher Costs?
The most immediate issue is margin protection.
Apple can charge $200 more for a Pro iPhone, but the financial benefit depends on how much component costs, manufacturing expenses and launch promotions increase. Foldable phones require more complicated displays, hinges and assembly processes than traditional smartphones.
Investors should pay close attention to management’s gross-margin guidance following the launch.
If Apple can raise prices faster than its costs increase, the new lineup could support earnings even with modest unit growth. If customers resist the increases or manufacturing costs remain elevated, the pricing strategy could disappoint.
2. Can Apple Revive a Stalled Category?
Foldable smartphones have existed for years. Samsung released its first Galaxy Fold in 2019, while other manufacturers have developed devices with multiple hinges.
Consumer adoption has remained limited. IDC estimates that global foldable shipments declined 15% during the first half of the year.
Apple’s entry could change the economics of the category. IDC projects that Apple could capture 44% of foldable-phone revenue in 2026 despite selling the device for only slightly more than three months during the calendar year.
That forecast highlights the power of Apple’s brand and pricing. It also sets an unusually high bar.
The decisive product feature may be the display crease. Existing foldables frequently show or feel a line where the screen bends. If Apple has made that crease substantially less noticeable, the company could offer a visible reason for customers to pay a premium.
If the crease remains obvious, the phone risks being viewed as an expensive variation of technology already available from competitors.
3. Can Ternus Restart Apple’s Innovation Narrative?
The foldable launch arrives as investors increasingly question where Apple’s next major growth engine will come from.
The iPhone remains central to the company’s hardware sales and wider ecosystem. Services provide recurring revenue, but that business still depends heavily on Apple’s installed base of devices.
A successful foldable could create a new premium tier above the iPhone Pro Max. It could also expand the market for accessories, device insurance, storage upgrades and subscription services.
The larger strategic question is whether Ternus can turn the device into the beginning of a broader product cycle. Investors will want evidence of a pipeline extending beyond a single attention-grabbing phone.
Apple Does Not Need Foldables to Become a Mass Market Overnight
The obvious measure of success will be the number of foldable iPhones sold. That may be the wrong benchmark during the first year.
At $2,200, the product is designed for premium customers, early adopters and technology enthusiasts. Apple could generate significant revenue and strengthen its brand without selling foldables at the scale of its standard iPhones.
Limited early volume may even help Apple manage manufacturing complexity and scarcity. A constrained launch would allow the company to improve yields, study customer behavior and refine the design before attempting a broader rollout.
The foldable could also act as a price anchor. Once customers see a $2,200 iPhone, a Pro model priced several hundred dollars lower may appear more reasonable, even after a $200 increase.
That pricing psychology could make the foldable financially valuable beyond its own sales.
The larger danger would be weak demand combined with aggressive production. Excess inventory, heavier promotions or shortened lead times could indicate that consumers see the product as a novelty instead of the next major iPhone category.
The Foldable iPhone Scorecard
Investors can evaluate the launch using four signals:
- Price acceptance: Watch preorder demand, shipping delays and carrier promotions. Strong demand without unusually generous incentives would confirm Apple’s pricing power.
- Product differentiation: Focus on the screen crease, durability, multitasking experience and battery life. These features will determine whether Apple has meaningfully improved the foldable format.
- Margin protection: Compare higher retail prices with management’s gross-margin outlook. Revenue growth will matter less if expensive components consume the gains.
- Product pipeline: Listen for clues about future foldables, new form factors and closer integration between the iPhone, iPad and Mac. One device can create excitement, but a sustained cycle requires follow-through.
The Investor Takeaway
Apple’s foldable iPhone is a test of how much financial value the company can extract from innovation, brand loyalty and a deliberately premium product lineup.
A successful launch could raise average selling prices, create a new luxury category and give John Ternus immediate credibility as Apple’s new CEO. It could also demonstrate that Apple still has the power to enter a struggling market and redefine it.
A weak launch would expose the limits of that power. Consumers may decide that a folding screen does not justify a price approaching the cost of a high-end laptop.
For Apple shareholders, the key question is larger than whether the phone folds. It is whether Apple can persuade millions of customers that the next era of the iPhone is worth paying substantially more for.
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