Apple catches up in foldables. Wall Road likes it

Apple Inc (NASDAQ:AAPL, XETRA:APC) had Thursday, with shares up 3.1% after unveiling its first foldable iPhone, the $1,999-and-up iPhone Duo.

The transfer places Apple right into a market Samsung, Google and Huawei have performed in for years – the most important shake-up to the iPhone lineup in a very long time.

The reveal additionally marked new CEO John Ternus’s first main product launch since taking on.

The Duo packs a 5.4-inch outer show, a 7.6-inch internal show, Apple’s new A20 Pro chip with a contemporary show engine, and Touch ID. It is available in star white and night time sky, begins at $2,000 for 256GB and tops out at $3,200 for 2TB. Pre-orders open October 16, with transport beginning October 23.

Apple additionally trimmed its lineup to a few fashions: the Pro ($1,199), the Pro Max ($1,299), and the Duo, with each the Pro and Pro Max up $100 from final yr.

What analysts are saying

Bank of America referred to as the Duo the star of the present, praising how properly Apple blended the {hardware} and software program. The financial institution sees the larger foldable display screen opening up a a lot bigger marketplace for Apple, particularly as soon as pencil assist arrives later within the yr and the system begins feeling extra like an iPad for productiveness.

New touches like twin seize in FaceTime and apps constructed across the additional display screen area ought to assist it go mainstream over time, analysts added.

UBS mentioned the occasion principally matched expectations, because the agency had already anticipated the foldable, although it nonetheless referred to as the Duo an actual shift for the lineup.

On pricing, UBS famous the $100 will increase on the Pro and Pro Max do not absolutely offset Apple’s greater reminiscence prices, however an even bigger $200 leap probably would have harm demand. The financial institution pointed again to 2022, when Apple raised European costs and demand stayed comfortable for practically a yr, as a cautionary comparability.

UBS additionally expects the iPhone 18 Base, Air and e fashions to launch early subsequent yr.

Supply chain alerts

UBS’s provide chain checks level to eight million to 10 million foldable builds. At $1,999, the Duo prices greater than the 1TB iPhone 17 Pro at $1,499 however strains up nearer to the 2TB iPhone 17 Pro Max at $1,999.

UBS expects early demand to come back principally from present Apple prospects upgrading quite than switchers. Using Samsung’s foldable sell-through as a information, roughly 10 million items over a yr, about 3 million within the first three months, UBS thinks Apple might high 5 million foldable items in fiscal 2026.

If a pair million Pro and Pro Max patrons shift to the Duo, that would add about 6 million incremental items, roughly a 2% enhance to its 261 million iPhone estimate for the yr. UBS left its broader iPhone estimates unchanged.

Ternus makes his mark

Thursday’s occasion additionally served as a coming-out celebration for Ternus, who used his first main keynote as CEO to place his personal stamp on Apple’s product philosophy.

Bank of America mentioned Ternus, in his debut as CEO, leaned into Apple’s concentrate on dependable merchandise that tie {hardware}, software program and companies collectively. He described the iPhone as an “clever private hub” powered by on-device AI and Private Cloud Compute for harder requests, with Siri anticipated to develop extra succesful whereas defending consumer privateness.

BofA stored its Buy score, noting pricing got here in decrease than anticipated, which might enhance items however might stress gross margins given rising reminiscence and element prices.

Whether the Duo turns into a real progress driver or a distinct segment improve for loyalists would be the key query heading into the vacation quarter.