Apple Debuts $2,000 Foldable iPhone Duo in Major Strategy Shift Under New CEO John Ternus

Just two weeks after taking the helm at Apple, newly appointed Chief Executive Officer John Ternus has unveiled the tech giant's most dramatic hardware redesign in nearly two decades. Speaking at the company’s annual product release event on Wednesday, Ternus introduced the iPhone Duo—a high-end foldable smartphone that represents the first major overhaul of the flagship device’s form factor since Steve Jobs launched the original model in 2007.

The high-stakes announcement positions the foldable unit as Apple’s most expensive mobile device to date. In the United States, the iPhone Duo carries a starting price of $1,999, with top-tier configurations reaching up to $3,200. For consumers in the United Kingdom, entry-level pricing has been set at £1,999. This represents a significant price jump compared to Apple's previous flagship releases, where initial starting costs previously topped out at $900 (£664).

Featuring a book-style opening mechanism, the Duo is officially the largest iPhone Apple has ever built. When fully opened, the internal display provides an expansive screen experience similar to a compact iPad, while closing the handset yields a form factor resembling a slightly wider standard iPhone.

During his keynote presentation, Ternus explained that the Duo was heavily inspired by the iPad, aiming to deliver folding features that are both fluid and intuitive. He criticized existing foldable smartphones on the market, stating that rival devices often feel like two separate phones attached together, which can make an expanded screen feel diminished. Ternus asserted that the Duo is the culmination of key engineering innovations designed to redefine how users interact with folding devices.

The launch serves as an immediate trial for Ternus, who stepped into Apple's top job following the resignation of long-serving chief executive Tim Cook. Before his appointment to the chief executive post earlier this year, Ternus spent many years as a senior executive within Apple’s hardware division, giving him direct oversight over the foldable project during its multi-year internal development.

Industry analysts believe the timing of the executive leadership change was intentionally aligned with the product's debut. Ben Wood, chief analyst at technology research firm FDM CCS Insight, noted that Ternus’s promotion was likely orchestrated to coincide with what stands as one of Apple's most consequential product launches in years, adding that strategic decisions at the company are never made by accident.

Carolina Milanesi, an analyst at Creative Strategies who attended the event, observed that the presentation’s heavy focus on Ternus made it feel as though the new chief executive was being featured almost as a product himself. However, Milanesi highlighted potential consumer hurdles, pointing out that shifting from a traditional smartphone to a foldable format introduces a noticeable software learning curve for everyday users.

By introducing a foldable device, Apple is attempting to counter persistent criticism from industry observers who argue that the company has failed to deliver a truly groundbreaking hardware hit since the release of the original iPhone almost 20 years ago.

Financial analysts also voiced caution regarding the foldable device's long-term commercial impact. Dipanjan Chatterjee, an analyst at Forrester, warned that the Duo risks becoming a luxury ornament within Apple's portfolio—offering strong brand prestige and status symbol value without driving substantial volume growth.

Chatterjee compared the Duo’s market potential to previous Apple hardware launches. He noted it could follow the trajectory of the Vision Pro headset, which struggled to capture broad consumer interest at its $3,699 (£2,729) price tag, or mirror the success of the Apple Watch, which, while not matching iPhone sales levels, continues to attract millions of buyers annually.

The broader market for foldable smartphones currently remains a niche segment. According to data from FDM CCS Insight, foldables from manufacturers such as Samsung and Huawei account for only 2 percent of global smartphone sales. Even with Apple entering the market, analysts project that foldable devices will only reach about 4 percent of total smartphone sales over the coming decade.

Maintaining strong hardware demand is critical for Apple, as the iPhone accounts for more than half of the company’s annual sales revenue. In recent quarters, executives reported record consumer demand, emphasizing that the preceding iPhone iteration marked one of the firm's most successful product launches to date.

In addition to the foldable handset, Apple refreshed its standard lineup during Wednesday's event by unveiling the iPhone 18 Pro and iPhone 18 Pro Max. In the US market, these conventional models will start at $1,199 (£855) and $1,299 (£959), respectively.

Alongside the new hardware, Apple detailed a major overhaul of its virtual assistant, rebranded as "Siri AI." Starting with the iPhone 18 series, the updated assistant can access information across a user's device—including personal messages and emails—to answer queries, locate files, and execute actions autonomously.

These updated AI capabilities will also extend to the Apple Watch. Wearers who choose to enable the feature will be able to use Siri AI to transcribe live spoken conversations and automatically generate notes.

Addressing privacy concerns surrounding deep personal data integration, Ternus described the new AI functions as an "intelligent personal hub." While acknowledging that the feature relies on highly personal daily details, he assured users that processing will predominantly occur directly on the device itself. In instances where third-party cloud servers are required, Ternus emphasized that strict encryption protocols will keep user information private.