Apple CEO John Ternus Bets Big on Foldable iPhone Duo and Premium Pricing

John Ternus, Apple's new CEO, is betting on the success of the foldable iPhone Duo and premium pricing to drive revenue growth. The device was introduced alongside a strategic shift away from baseline iPhone models during his first product launch as CEO.

The flagship iPhone Duo carries a starting price of $1,999, while Apple raised the prices of the iPhone 18 Pro and Pro Max by $100 each to $1,199 and $1,299 respectively. Ternus personally oversaw the development of the foldable iPhone during his time leading hardware engineering.

Tim Cook has moved into an executive chairman role, giving Ternus access to continuity at the leadership level as he builds out his own strategic vision. Apple's premium-first approach carries real risk, as the company must persuade consumers that its newest hardware justifies significantly higher prices at a time when component inflation is already pressuring household budgets.

Ternus also inherits an AI challenge, with Apple still working to establish Siri AI and Apple Intelligence as compelling everyday products while rivals continue to invest aggressively in generative AI capabilities. The company reported a 48.1% gross margin excluding tariff benefits in fiscal Q3, but management warned that significant supply constraints could restrict product availability during what is shaping up to be a critical first product cycle for the new CEO.