Apple's $1,999 Foldable iPhone Launches to Analyst Doubts

Apple launched its new foldable iPhone Duo on Wednesday with a starting price of $1,999 in the US. Some observers at the Cupertino event questioned its appeal beyond wealthy tech enthusiasts.

New CEO John Ternus demonstrated the device running apps like Zoom and Netflix on an expanded display, positioning it for work and entertainment. He highlighted the larger screen as a potential personal AI hub. Analyst Carolina Milanesi of Creative Strategies noted Apple's unusual vagueness, stating, "Apple doesn't usually define who the buyer is, but in this case specifically, they really shied away from it."

Market Position and Price Concerns

Analysts warn the high price and unclear target buyer could confine the iPhone Duo to a niche. Neil Shah of Counterpoint Research observed a lapse in positioning, unsure if the device is for work or play. The phone retails for up to $3,199 with the highest storage option. Apple's broad marketing failed to articulate which audience would pay that premium.

This contrasts with past Apple launches. Steve Jobs framed the 2010 iPad as a media consumption device. Tim Cook later repositioned the iPad Pro for creative professionals in 2015. The Apple Watch evolved from a fashion item into a health companion. The company's Vision Pro headset, launched in 2023, faced similar critiques over its high cost and ambiguous use case.

The Foldable Market Landscape

Foldable phones are projected to account for less than 3% of the global smartphone market in 2026, with little change expected in 2027 despite Apple's entry. Samsung leads the segment with a 40% market share, having sold foldables since 2019. Other players include Alphabet's Google and China's Huawei.

Samsung overcame early quality issues, dubbed "foldgate," and unveiled a new passport-style model in July. That device has outperformed its predecessors. Samsung has also launched an ad campaign mocking Apple for "reheating our leftovers." Still, overall market growth has slowed as foldables struggle to move beyond a niche audience.

Sales Projections and Demand

Counterpoint's Neil Shah estimates Apple will sell close to 6 million iPhone Duo units by year-end, fueled by pent-up demand from existing iPhone users. Those sales alone would give Apple a quarter of the global foldable market. Technology research firm Omdia expects Apple's entry to provide the biggest year-to-year boost in foldable shipments since 2021, forecasting a 2026 market of 22.3 million units.

Bob O'Donnell, chief analyst at Technalysis Research, said the high price narrows the potential audience, especially among younger buyers. He believes Apple diehards will drive early sales. "It'll be something that'll be lusted after," O'Donnell said. "It'll be a status symbol, for a while, because I think it's going to be hard to get." The report is by Kenrick Cai, Nathan Frandino and Stephen Nellis, courtesy of Reuters.