New Apple CEO John Ternus to face first test with foldable iPhone launch

Apple is set to launch a new generation of devices, including a highly anticipated foldable iPhone, during its annual hardware event on Wednesday in Cupertino, California. This will be the first major event under the leadership of new CEO John Ternus, who assumed office on September 1, succeeding Tim Cook. Ternus, 51, has been with Apple since 2001 and has played a pivotal role in designing the company's entire product range, including the iPhones that contribute most significantly to its revenue.

The highly-anticipated event, which Ternus described as "phenomenal" in his first CEO email, is slated to begin at 10 am local time. The tech giant is expected to reveal the foldable iPhone, codenamed the iPhone Ultra, priced at around $2,000. This device, similar to the foldable smartphones from Samsung, will boast a smaller external display when closed and a larger screen that unfolds when opened, effectively merging the portability of a smartphone with a tablet's expansive screen.

The foldable iPhone constitutes a critical test for Apple, a company that has not achieved a breakthrough hit since the AirPods ten years ago. Samsung entered the foldable smartphone arena with the Galaxy Fold in 2019, followed by the Galaxy Z Fold last year at a starting price of $2,000. Despite occupying less than 2 percent of the global smartphone market, IDC predicts Apple could capture up to 31 percent of the foldable smartphone market by year-end and potentially reach 40 percent by 2027.

The introduction of the foldable iPhone is poised to reshape both the Chinese and global markets. Research associate Kiranjeet Kaur from IDC notes that the device's debut could shift competitive dynamics and significantly impact the industry. The launch coincides with a surge in demand for powerful chips due to the AI boom, leading to supply chain constraints that are driving up prices across various sectors.

Consequently, smartphone shipments are expected to drop by more than 16 percent this year, while prices are anticipated to rise by over 27 percent.

In a departure from previous practices, Apple may not unveil a new entry-level iPhone this year, focusing instead on launching two premium models: the iPhone 18 Pro and Pro Max. The foldable Ultra is projected to be roughly the size of a passport when closed, featuring a duo of camera lenses – a standard and an ultra-wide lens, according to Bloomberg.

Additionally, Apple may introduce an improved, AI-powered version of Siri across multiple new devices, which could include watches, AirPods, an Apple TV box, and the HomePod mini. A smaller 7-inch device, potentially serving as a smart home hub, is also rumored but remains uncertain whether it will be unveiled during this event or later in the year.