In a significant shift, Apple has launched its first foldable phone, named the Duo, marking a major evolution in the design of its flagship products. The Duo, resembling the size and shape of a passport, features rounded edges and opens to reveal a widescreen that can be oriented horizontally or vertically. When folded, it displays a smaller screen on the front. According to Apple, this model is the company’s thinnest phone yet when unfolded.
New Leadership and Product Innovations
This launch event was notably the first major unveiling under the leadership of Apple’s new CEO, John Ternus, following Tim Cook’s transition. The Duo represents the most significant redesign since the iPhone X eliminated the physical home button in 2017. During the last fiscal year, iPhone sales accounted for over $209 billion, making up more than half of Apple’s revenue.
In his debut, Ternus emphasized Apple’s commitment to privacy, highlighting the iPhone’s role as a personal AI hub. “Trust only goes so far when your data is no longer yours to control,” he stated, underscoring that Apple Intelligence operates on-device whenever feasible.
Advancements in AI and New Devices
Lilian Rincon, who joined Apple from Google earlier this year, introduced an updated Siri capable of working with 300,000 applications upon release. Additionally, Apple showcased the iPhone 18 Pro and 18 Pro Max, which continue the legacy of non-folding smartphones. These models are priced at $1,199 and $1,299, respectively, marking a $100 increase over their predecessors.
Apple also addressed concerns about AI-manipulated images by introducing the “Apple Reference Image” standard to authenticate photos taken with the new iPhone 18 Pro cameras. Furthermore, it will support the SynthID standard to identify AI-generated or edited images, although these features won’t be available in the EU or China.
New AI Capabilities and Products
The iPhone 18 Pro will incorporate the A20 Pro chip, enhancing the ability to run advanced AI models directly on the device. Analyst Paolo Pescatore from PP Foresight noted, “Apple is leveraging its vast hardware ecosystem to integrate AI into everyday experiences across its devices.” Despite these innovations, Apple’s shares dipped slightly during the presentation.
Apple also announced updates to its AirPods, starting at $129 with noise cancellation, and a $149 version with additional features like wireless charging and swipe volume control. The Apple Watch Series 12 and Apple Watch Ultra 4 were introduced with a focus on health, featuring improved heart rate tracking and recovery assessment capabilities.
Market Strategy and Challenges
As Apple navigates this new era, Ternus, previously the hardware chief, faces the challenge of convincing consumers to embrace a foldable device potentially priced over $2,000. Despite the high cost, analysts predict strong sales, with Apple expected to capture a significant share of the foldable market by next year.
The event signals a shift in Apple’s product release strategy, with a focus on premium models like the Duo and the iPhone Pro series. Analysts anticipate that updates to more affordable iPhone models will be deferred until the following spring. This approach aims to stabilize Apple’s sales cycle, which has historically peaked during the holiday season.
