Apple's Ternus Doubles Down on iPhone with $1,999 Foldable Device

Apple's new CEO John Ternus has made it clear that he is doubling down on the iPhone, betting the device can anchor Apple's unproven AI strategy. The latest move was a $1,999 foldable iPhone Duo unveiled at a recent launch event, which some see as both an opportunity and a risk for investors.

The bull case for Apple rests on its ability to keep outrunning expectations with its product cycle. In the most recent quarter, iPhone revenue rose 22% year over year, while Mac grew 29%, and Services hit a June-quarter record of $30.7 billion. However, some are cautioning that the stock's valuation already reflects this quality, leaving little margin for error if Siri AI underwhelms or supply constraints crimp the December quarter.

Apple currently trades at 41 times earnings with only 2.7% upside to a mean analyst target of $323.86, implying a premium multiple that some see as dangerous. The stock has gained 16.31% year to date and 35.06% over one year, but composite sentiment sits at a neutral 47.4, softening 13.25 points over the past week.

While Apple's underlying business is compounding at rates that justify a premium, some see the stock as a Hold until Ternus proves the AI thesis. The setup is genuinely balanced, with a clear buy trigger - evidence that Siri AI drives a measurable iPhone upgrade wave through the holiday quarter and into fiscal 2027 - or that memory costs stabilize and margin guidance for the December quarter beats expectations.