Apple's new boss starts with big gamble on costly first folding iPhone

Apple's new CEO, John Ternus, has unveiled the company's first foldable iPhone at the annual product release event. Dubbed the Duo, the new iPhone boasts a book-style design and is the largest and most expensive in the line, priced from $2,000 to $3,200. Ternus explained that the foldable feature is intuitive and fluid, aiming to provide a unique experience compared to other foldable smartphones on the market.

The Duo merges the appearance of a compact iPad when unfolded and a wider iPhone when folded in half. Ternus emphasized that Apple sought to avoid the clunky feel of other foldable devices, which he felt made the screen appear smaller.

The CEO's involvement in the development of the foldable iPhone dates back several years, having spent time in Apple's hardware division before becoming Cook's successor. FDM's chief analyst, Ben Wood, noted that Ternus' promotion coincided with one of the company's most significant iPhone launches. Despite the potential for the foldable iPhone to enhance Apple's premium image, industry analyst Dipanjan Chatterjee cautioned that it might ultimately end up as a costly ornament rather than driving substantial growth.

Apple also announced the new iPhone 18 and 18 Pro, starting at $1,200 and $1,300 respectively. Chatterjee suggested that the foldable iPhone might face challenges similar to Apple's Vision Pro headset, which has not gained widespread popularity. Alternatively, it could become Apple's next successful product like the watch, which, though not as popular as the iPhone, has a large user base.

Market research indicates that foldable smartphones currently hold only 2% of the global market, with Apple's entry potentially increasing interest to 4% in the next decade.