Apple Inc. (NASDAQ:AAPL) has unveiled its first foldable smartphone, the Duo, representing a significant redesign within the iPhone lineup. The Duo is priced at $1,999 in the United States and features a 7.6-inch inner display alongside a 5.4-inch outer screen. It is powered by Apple's A20 Pro chip and includes a custom hinge, with a titanium construction. For John Ternus, Apple's new CEO, this launch marks his debut product since taking over from Tim Cook. Ternus described the Duo as "the most transformational change to iPhone since the original." Apple promotes the device as a blend of smartphone portability and tablet-like productivity, offering a Split View mode that allows users to run two apps simultaneously.
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The company has noted a growing willingness among customers to invest in premium products, attributing a 22% year-over-year growth during the June quarter to stronger sales of Pro models. This trend supports Apple's premiumization strategy. The June quarter also saw a record number of users upgrading their devices, indicating that even without increasing unit sales, revenue could rise if the average selling price of iPhones continues to climb.
Industry analysts are optimistic about Apple's prospects in the foldable market. TrendForce estimates the company will capture 25% of the niche market share in its first year, while IDC projections suggest a potential 40% market share by the end of 2027. The A20 Pro chip is designed to enhance the iPhone's AI capabilities, positioning the Duo as an "intelligent personal hub," with its larger screen potentially fostering a sustainable upgrade cycle.
Conversely, the high $1,999 price tag may limit the Duo's appeal, as it is beyond the financial reach of a significant portion of the global population. Additionally, Apple's entry into the foldable market comes years after competitors like Samsung and Huawei, who have established technology, pricing strategies, and consumer insights. This challenge is especially notable in China, which constituted over 17% of Apple's sales in the June quarter, where Huawei and other local brands already hold a strong presence in the foldable segment, appealing to price-sensitive consumers.