Ternus' Foldable Pivot Signals Apple's Shift Towards Premium Pricing
Apple's new CEO, John Ternus, made waves at the company's biggest hardware event by unveiling a folding phone called the iPhone Duo. However, the real story lies in what he chose to cut: the lower-end iPhone models.
Ternus' decision to narrow the iPhone 18 lineup towards the Pro and Pro Max tier signals a fundamental shift in Apple's strategy. The company is now focused on earning more per unit rather than chasing first-time buyers, which was the approach of its predecessor.
The move is largely driven by rising memory costs, with Tim Cook stating that Apple is facing a '100-year flood' on DRAM prices due to exponential increases in memory prices. This has pushed Apple to adopt premium pricing as a defensive measure rather than a growth strategy.