Apple shares slip as iPhone price hikes steal foldable’s thunder

Apple shares slipped after investors showed little enthusiasm for the tech giant's debut of the first foldable iPhone alongside a series of price increases. The company entered the foldable market with the iPhone Duo priced at $1,999, more than seven years after Samsung first introduced the format. Apple also raised prices across its existing iPhone lineup, diverging from its previous practice of discounting older models when new ones were released.

The iPhone 17 saw a $100 price hike to $899 in the US, making it more expensive than its $799 launch price last year. Other models, such as the 17e, iPhone Air, and even the two-year-old iPhone 16, also experienced price hikes. The new iPhone 18 Pro and Pro Max were priced at $1,199 and $1,299, respectively, also $100 higher than the previous generation.

Following the launch, Apple's shares dropped by approximately 0.3 percent, having fallen 1.2 percent in the previous trading session. Apple's stock has still risen by around 16 percent this year, valuing the company at around $4.7 trillion. The muted response highlights the challenge of Apple's premium push in an already expensive smartphone market.

The launch of the foldable iPhone comes at a time when component costs are rising due to the AI boom, putting pressure on margins for electronics manufacturers. Analysts believe Apple may succeed by leveraging its brand and vast customer base, but the high price point of the Duo remains a concern.