Apple Unveils Foldable iPhone, But Muted Market Reaction Raises Questions About Demand
Apple has unveiled its first-ever foldable iPhone, dubbed the iPhone Duo, which opens into a large tablet-sized screen while still fitting in a pocket. The device starts at $1,999 and supports features like the Apple Pencil and split-screen multitasking.
The market's reaction to the launch was muted, with Apple shares dipping during the event before recovering to finish the day roughly flat. Despite this, analysts believe that the foldable iPhone has set Apple up for a pivotal few months, as it attempts to breathe fresh life into iPhone sales.
One of the key benefits of the foldable iPhone is its ability to offer a new ultra-premium tier above traditional Pro models. By pricing it at $1,999, Apple can lift the average price of iPhones sold, supporting revenue even if total units stay flat.
However, there are also concerns about the market's reception of foldable phones, which have been around for years but remain a niche corner of the market. Additionally, rising memory chip prices may squeeze Apple's margins and force it to balance between raising prices and absorbing the hit to profitability.