Apple Bets Big on iPhone with Foldable Duo Launch
Apple's new CEO John Ternus has made his first major decision, doubling down on the iPhone as the company's growth engine. The latest iPhone Duo is priced at $1,999 and was unveiled alongside refreshed hardware and messaging that positions the phone as central to Apple's AI strategy.
The iPhone generated $54.25 billion in fiscal Q3 2026, roughly half of the total revenue of $109.42 billion. Apple's product cycle has consistently outrun expectations, with iPhone revenue rising 22% year over year and Mac growing 29%. Services also hit a June-quarter record of $30.7 billion.
However, bears see a stock trading at a P/E of 41 with a forward P/E of 33, well above Apple's historical range of 25 to 30. Management warned that supply constraints will increase significantly next quarter across iPhone, Mac, and iPad.
Ternus is essentially untested as CEO, and the market is waiting for evidence that Siri AI drives a measurable iPhone upgrade wave through the holiday quarter and into fiscal 2027. If this happens, the premium multiple may be justified. But if not, the stock could quickly lose value.