Apple's Foldable iPhone Debut Under CEO Ternus Faces Market Test

Apple is poised to introduce a groundbreaking foldable iPhone, a device long anticipated by consumers and industry analysts, during its annual hardware event on Wednesday in Cupertino, California. This highly anticipated product unveiling will also serve as the inaugural major event for Apple's new chief executive, John Ternus, who assumed leadership from Tim Cook on September 1. Ternus, 51, brings extensive experience to the CEO role, having been a key figure in Apple's design and engineering divisions since joining in 2001, overseeing the development of crucial products like the iPhone, which remains the company's primary revenue generator.

The event, scheduled to commence at 10 a.m. local time (1700 GMT), was described by Ternus as "phenomenal" in a recent company-wide communication. Speculation is rampant that the new foldable device will be branded the iPhone Ultra, with initial reports suggesting a starting price of $2,000. Similar to offerings from competitors such as Samsung, the iPhone Ultra is expected to feature a compact external screen when folded and a significantly larger, tablet-like display when unfurled, aiming to bridge the gap between smartphone portability and tablet functionality.

Market Entry and Competitive Landscape

The launch of a foldable device represents a critical juncture for Apple, which has not introduced a truly disruptive new product category since the debut of AirPods approximately ten years ago. Samsung has been a pioneer in this space, releasing its first mainstream foldable smartphone, the Galaxy Fold, in 2019, followed by subsequent iterations like the Galaxy Z Fold. Although foldable smartphones currently constitute a small segment of the global market, capturing less than 2 percent of total shipments, Apple's entry could dramatically reshape this landscape. Industry research firm IDC projects that Apple could capture as much as 31 percent of the foldable demand by the end of 2026, potentially rising to 40 percent by 2027. "Apple's foldable iPhone is very likely to shift the competitive dynamics both in China and global markets," noted Kiranjeet Kaur, research associate at IDC. The strategic importance of this launch is underscored by the current challenges in the semiconductor industry, where high demand for AI-enabling chips has led to supply chain constraints and increased costs across various sectors.

The overall smartphone market is facing a projected decline of over 16 percent in shipments for 2026, coupled with an average cost increase exceeding 27 percent, according to IDC. However, foldable devices, often positioned at a premium price point, may be somewhat insulated from the most severe memory supply shortages impacting other segments. "Foldable phones are not immune to the memory supply shortages, but the relative impact is lower considering these phones are already priced in the higher-range," Kaur explained.

Further details suggest that Apple might deviate from its typical product strategy this year, potentially eschewing an entry-level iPhone model. Instead, reports indicate the company may focus on launching two higher-tier versions of its next smartphone series: the iPhone 18 Pro and the Pro Max. A more budget-friendly standard iPhone 18 could be slated for release in 2027. According to Bloomberg, the foldable iPhone Ultra will be roughly the size of a passport when closed and is expected to feature a dual-camera system comprising wide and ultra-wide lenses. The company is also reportedly integrating an enhanced, AI-powered version of Siri across its new devices, which could extend to updated Apple Watches, AirPods, Apple TV hardware, and HomePod mini smart speakers. A potential 7-inch smart home hub device, designed to serve as a central control unit for smart homes, may also be introduced, though its launch timing remains uncertain.