Apple's new boss starts with big gamble on $2,000 first folding iPhone

Apple has unveiled its most expensive iPhone yet - a foldable handset called the iPhone Duo, priced at a minimum of £1,999. This marks the first major design change in the iPhone line since 2007. The new device is a calculated risk by Apple's new CEO John Ternus, who replaced long-standing CEO Tim Cook earlier this month. Ternus argues that the iPhone Duo will revolutionize the user experience of foldable phones, stating that it "redefines the experience of using a foldable phone."

The foldable iPhone starts at $1,999 in the US, but can reach up to $3,200. It took eight years to develop, with Ternus directly involved in the process after spending years in Apple's hardware division. When unfolded, the phone resembles a small iPad and a wider iPhone when folded. Ternus described the device as both new and familiar, stating that it feels comfortable to use with one hand.

Competitors in the foldable market, such as Samsung and Huawei, currently hold nearly 80% of the foldable phone market. Francisco Jeronimo, vice president for data and analytics at IDC EMEA, noted that the real competition lies in China. Ben Wood, chief analyst at FDM CCS Insight, believes that Ternus' promotion may have been strategically timed for the launch of what could be one of Apple's biggest iPhone launches in years.

Apple's decision to introduce a foldable phone may address some criticism that the company has yet to achieve a major product hit since the first iPhone's release in 2007. However, analysts suggest that the foldable iPhone could become a premium-priced ornament in Apple's portfolio, providing badge value but not significant growth.

Dipanjan Chatterjee, an analyst at Forrester, warns that the foldable iPhone could face challenges similar to Apple's Vision Pro headset, which has not been a hit with buyers, or it could become Apple's next Apple Watch in terms of sales volume.

The foldable iPhone's success may also be hindered by the existing user experience with the traditional iPhone, as well as the learning curve associated with transitioning from a standard phone to a foldable device. The current market for foldable smartphones, led by Samsung and Huawei, accounts for only 2% of global smartphone sales. Even with Apple's entry into the market, analysts predict that foldable phone sales will only reach 4% of the total market in the next decade.