Apple shows off iPhone 18 Pro at start of event

Cupertino, California hosted Apple's annual product launch event on Wednesday, marking the first event under new CEO John Ternus. This launch represents the most significant overhaul of Apple's flagship product since the removal of the physical home button from the iPhone X in 2017. The iPhone contributed $209.6 billion, or slightly more than half of Apple's sales, in its most recent fiscal year.

Tim Cook, Apple's former CEO, handed over leadership to Ternus through a video presentation, which concluded with Cook pointing to Ternus and saying, "Not me. That's your guy."

Ternus emphasized the iPhone's potential as a personal AI hub, prioritizing privacy. He explained that Apple Intelligence runs on device whenever possible, ensuring users maintain control over their personal data. Apple's AI specialist, Lilian Rincon, unveiled an improved Siri assistant capable of integrating with 300,000 apps at launch.

The event showcased the iPhone 18 Pro and the 18 Pro Max, the latest iterations of Apple's renowned line. These devices will launch at a starting price of $1,199. The new A20 Pro chip, constructed on a 2-nanometer process, enhances the phone's ability to run advanced AI models directly on the device. This chip also features an advanced cooling system using packaging techniques employed in Apple's Mac chips, which improves performance without the need for a cooling fan.

Apple Intelligence and Siri are at the forefront of Apple's strategy, leveraging the company's extensive hardware base to integrate AI seamlessly into daily experiences across devices. Analyst Paolo Pescatore noted that Apple aims to use these strengths to make AI an integral part of everyday experiences.

Despite Ternus's prior role as Apple's hardware chief, he maintains a low public profile, focusing mainly on product introductions and sustainability initiatives. Ternus faces the challenge of persuading customers that a foldable device, expected to cost over $2,000, is necessary. While folding phones from Samsung and Huawei have been on the market since 2019, they have remained a niche market.

However, analysts predict that with a high price tag, Apple will sell all the foldable iPhones it can produce, securing a 40% market share by the end of next year.

The folding phone category is expected to be a significant success for Apple due to its late entry and mastery of engineering challenges such as creating a durable hinge and minimizing screen crease visibility. One potential challenge could be the device's resistance to dust and water, an area where Google's Pixel 10 Pro Fold has outperformed Samsung's offerings with an IP68 rating.

Wednesday's event is also anticipated to signal a shift in Apple's annual product schedule. Analysts expect Apple to showcase new watches but postpone updates to more affordable iPhone models until the following spring. Instead, the company will focus on the folding device and its iPhone Pro and Pro Max lineup, aiming to smooth out Apple's annual sales cycle, which typically sees a significant revenue increase during the year-end holiday quarter for the U.S. and Europe.