Ternus Faces Premium-Only iPhone Test

Apple's new CEO John Ternus is set to face his first major test of execution at this month's iPhone event, where he will unveil a premium-only iPhone lineup. The company has decided to skip its mainstream models, including the base iPhone 18 and 18e, in favor of the more expensive Pro and Pro Max models.

JPMorgan analyst Samik Chatterjee expects Apple to raise U.S. prices for the Pro and Pro Max models by about $100 to help offset higher component costs. This means that Ternus must convince customers not only to buy a premium device, but also to pay more for it.

While analysts point out that premium iPhones have become increasingly popular over the years, with Pro models accounting for roughly 37% of shipments in 2020 compared to about 65% in 2025, this cycle introduces new variables. The company must persuade customers to buy a premium device at a higher price, and investors will be watching closely to see if this strategy pays off.

The event itself may not provide clear answers, as JPMorgan expects supply constraints affecting processors and memory to make early delivery times less reliable indicators of demand. Instead, investors will likely pay closer attention to supply chain production revisions later in the quarter.