Apple unveiled its first-ever foldable iPhone at a splashy event Wednesday as new CEO John Ternus looked to start his tenure with a bang and ease concerns about the tech giant’s ability to innovate.
Dubbed the iPhone Duo, the new device will be available from Oct. 23 and will start at $1,999, slightly lower than what analysts expected.
It’s similar in size to a passport and provides a bigger display without sacrificing portability, Apple said. The device snaps open and shut with a “hinge” mechanism and is designed to be Apple’s thinnest iPhone ever when opened.
When opened, the Duo’s screen is 80% larger than that of the iPhone 18 Pro. Ternus said that while foldable phones feel like “two phones awkwardly stuck together,” the Duo is designed to work seamlessly as users swap from a traditional display to the wider iPad-like screen – even using two apps side by side.
The buzzy “Surprise and Shine” event at the company’s Cupertino, Calif., headquarters opened with details about Apple’s refreshed iPhone 18 Pro and Pro Max models, which feature an upgraded A20 computer chip, improved battery life and faster phone charging.
Apple said its upgraded smartphone line was designed to serve as the perfect vehicle for the company’s AI, called Apple Intelligence. The iPhone 18 models come in new glacier and burgundy colors alongside more traditional options. The iPhone 18 Pro is priced at $1,199 – or $100 more expensive than last year’s version – while the Pro Max costs $1,299.
Other new products unveiled at the event include the AirPods 5, the latest iteration of Apple’s earbuds, which feature upgraded durability. The base model costs $129 and the higher-end model costs $149. The Apple Watch also got a refresh with Series 12 and Ultra 4 models.
The event marked the first keynote address led by Ternus, who took over as CEO on Sept. 1 after serving for years as Apple’s hardware chief. Longtime CEO Tim Cook has shifted to a role as executive chairman, though he is expected to remain heavily involved at Apple for the next few years.
Apple shares were down about 2% immediately after the event. The Duo announcement was widely anticipated and was likely already priced in to the company’s stock.
Nonetheless, the announcement could reinvigorate a smartphone lineup that some critics said had grown stagnant, according to tech analyst Paolo Pescatore, the founder of PP Foresight.
“Significantly, Apple has created a new premium growth opportunity, opened up another revenue stream and injected fresh momentum into the iPhone business,” Pescatore said. “The foldable should sell in the millions and give the wider category and developer community a major boost.”
The foldable iPhone will hit stores during a challenging time for Apple, which is contending with a supply chain crunch related to an industrywide shortage of computer chips and other key components.
Apple said earlier this year that the memory shortage forced it to raise prices on MacBooks and iPads, with some items rising by as much as $500. The company has described its supply chain woes as an “unprecedented challenge.”
Ahead of the reveal event, analysts at KeyBanc highlighted Apple’s pricing challenge – noting that the company faced a dilemma of either hiking prices to offset production costs at the expense of sales volume, or limiting hikes and inviting questions on Wall Street about its margins.
The company’s stock was down more than 4% over the last five days ahead of the event – a sign that Wall Street had muted expectations despite hype around the foldable iPhone.
The foldable phone marked Apple’s most high-profile product launch since the debut of its “Vision Pro” virtual reality headset in 2024, which has failed to excite consumers due to a lack of dedicated apps and an eye-watering $3,500 price tag.
Apple on Wednesday also confirmed the release of its long-delayed AI makeover of its Siri voice assistant, which is launching in beta this month ahead of a wider release.
Analysts have warned that Siri needs a strong showing to reassure Wall Street about Apple’s AI strategy.
This is a breaking story. Check back for updates.