Ternus Unveils $2,400 Foldable iPhone Ultra Amid Aggressive Pricing Strategy
Apple's new CEO John Ternus has a significant financial stake in the company's success, receiving a $55 million equity award as part of his compensation package. This award is tied to Apple's total shareholder return relative to the S&P 500, with three-quarters of it vesting based on performance. Just eight days into his tenure, Ternus took the stage at an Apple keynote event to unveil the new foldable iPhone Ultra, starting at $2,400.
The supply of this high-end device is limited, with production capped at a few hundred units per day, and shipments potentially delayed until October or early November. This aggressive pricing strategy may be a test for consumers' willingness to absorb higher costs, as Apple's recent hikes have been driven by memory price increases. CFO Kevan Parekh attributed the sequential margin move to this factor.
On the fiscal Q3 2026 call, outgoing CEO Tim Cook framed the price hikes as forced due to a '100-year flood' on memory pricing. Despite these challenges, Apple's fundamentals remain strong, with revenue reaching $109.42 billion, up 16.36% YoY, and EPS of $2.02 extending a nine-quarter beat streak.