John Ternus, Apple's hardware chief, is set to unveil his first batch of new products since taking the helm as CEO this Wednesday. The central challenge: persuading consumers to embrace two unprecedented shifts in the iPhone's nearly two-decade history — a foldable design and a price tag exceeding $2,000.
This entirely new form factor has been in development within Apple's hardware division for at least eight years, a unit Ternus led until this week. Outgoing CEO Tim Cook has handed the reins of this high-stakes launch to his successor, who steps into the role of leading the world's second-most-valuable company after just two weeks on the job.
Yet the debut is fraught with hurdles. Apple must convince buyers to accept higher prices to offset cost pressures rippling through its supply chain, or risk sacrificing its famously robust profit margins. Meanwhile, while foldable phones are eye-catching, they have seen limited consumer uptake since other major manufacturers introduced them seven years ago.
"Apple had plenty of reasons to delay entering this specific product category," said Radu Leite, a former Apple display engineer. Advances in recent years have boosted foldable screen durability, reduced crease visibility, and lowered manufacturing costs. Leite added that the structural design Apple might offer has been technically feasible for over a decade. "But ten years ago, manufacturing such a screen would have cost thousands of dollars. It was also a business question: was the market big enough? At the time, the answer was no."
Analysts project Apple's foldable device will retail at or above $2,000, with price increases expected across the entire iPhone lineup. That price point could serve as a critical test of consumer willingness to pay. Reports suggest Apple will delay the base model iPhone 18 until next spring.
Foldables currently represent roughly 2% of global smartphone sales, and growth in this niche has slowed markedly since Samsung debuted its first model in 2019. Apple is betting its entry can reignite interest in the relatively niche form factor and help expand its market share. This reflects a familiar Apple strategy: observe competitors launch risky new products, absorb the fallout from early technical flaws, then release a refined version.
Apple's foldable research predates Cook's tenure as CEO. A 2011 patent indicates the company was already working on hinge mechanisms. According to insiders, Apple's engineering and display teams began experimenting with folding technology as early as 2018.
Jefferies analyst Eddie Li noted that Ternus's Wednesday presentation will kick off a three-to-five-year product launch cycle. These products, planned well before his appointment, aim to spark renewed consumer interest. "iPhone demand has reached a saturation point," Li said. "Apple needs to focus on developing new form factors to drive upgrades... They can't just stick with existing designs and expect consumers to pay ever-higher prices over time."
This year, Apple, like the broader consumer electronics industry, has been hit by component shortages. Data centers have aggressively stockpiled parts, especially memory chips, tightening supply further. Apple has already raised prices on Mac computers and iPads. According to IDC estimates, global smartphone sales are contracting as prices climb.
IDC forecasts that once Apple enters the foldable space, it will become the only growth segment in the global smartphone market in 2026. IDC analysts expect worldwide foldable shipments to grow roughly 12% year-over-year, with Apple capturing 40% of that market by 2027.
UBS analyst David Vogt predicts Apple will sell at least 10 million foldable units in its first year, roughly matching Samsung's sales over the past 12 months. While that's a small fraction of Apple's annual iPhone shipments of about 250 million, it would be enough to lift the company's average selling price. "If you're dealing with supply chain challenges, you increase production of high-priced products and decrease production of low-priced ones," Vogt said.
Like many analysts, Vogt expects Apple to raise prices across the iPhone lineup this week. Market attention on those increases may rival the buzz surrounding any shiny new device.
Where to begin: The launch marks a pivotal moment for Ternus, testing not just consumer appetite for a $2,000+ foldable iPhone, but also his ability to navigate pricing strategy, supply constraints, and differentiation in a crowded market — all within his first months as CEO.
Why just the 10 ASX 200 shares? This article focuses specifically on Apple's strategic launch and its market implications. The user's query about ASX 200 shares appears to be a separate topic not covered in this news content.
Comments