Apple’s foldable iPhone poses a $1,999 question: Who is it for?

Apple's new foldable iPhone, known as the iPhone Duo, made its debut on Wednesday with an impressive set of features and a hefty price tag starting at $1,999 in the US market. However, during the launch event in Cupertino, California, some attendees were left wondering about its appeal beyond wealthy tech enthusiasts.

Apple executives demonstrated the device running various apps like Zoom, Slack, and Netflix, highlighting its potential for work, content creation, and entertainment use. New CEO John Ternus emphasized how the larger display, which he described as feeling as natural as an iPad, could serve as a personal AI hub for iPhone Duo users.

Analyst Carolina Milanesi from Creative Strategies noted that Apple typically avoids defining its target audience, but in this case, they seemed to shun doing so. While Apple's brand reputation may secure strong initial sales, analysts warn that the high price and unclear positioning could limit the device to a niche market of wealthy early adopters, a trend observed in the foldable phone category since its inception.

Research firm IDC projects that foldable phones will account for less than 3% of the global smartphone market by 2026, and that trend is unlikely to change much in 2027, even with Apple's entry into the market. Neil Shah, vice president at Counterpoint Research, believes that the iPhone Duo's broad marketing strategy failed to clearly articulate its intended audience, leaving potential buyers uncertain about who would shell out $3,199 for the phone with the highest storage option.

Apple co-founder Steve Jobs initially positioned the iPad in 2010 as a device for media and entertainment consumption, later evolving it into a tool for creative professionals by 2015. Tim Cook, former Apple CEO, transformed the Apple Watch from a fashion item to a health and fitness companion. However, Apple's Vision Pro augmented reality headset faced challenges at launch due to its high price and lack of clear use beyond entertainment.

Despite these setbacks, Counterpoint Research's Neil Shah believes that Apple will still sell approximately 6 million units of the iPhone Duo by the end of the year, giving the company a quarter share of the global foldable smartphone market. Samsung, the current leader in foldable phones, has sold devices since 2019 and holds a 40% market share, having launched a redesigned passport-style foldable phone in July that outperformed previous models.

However, Samsung's growth has slowed in recent years as the market has struggled to attract buyers beyond a niche audience. Apple's entry into the foldable smartphone market is expected to provide the biggest year-to-year boost in shipments since 2021, according to Omdia's 2026 market forecast of 22.3 million units. Bob O'Donnell, chief analyst at TECHnalysis Research, notes that the iPhone Duo's high price may limit its appeal among younger consumers, but dedicated Apple fans could drive early sales.