Apple is set to unveil its first foldable smartphone, aiming to capitalize on growing interest in advanced display technology and artificial intelligence capabilities. The launch, expected today under the leadership of Apple’s senior vice president of hardware engineering, John Ternus, marks the company's entry into a device category that has been available internationally since 2019.
Foldable phones, initially popularized by manufacturers such as Samsung, have evolved through multiple iterations. Samsung, the largest global mobile phone manufacturer, recently introduced its eighth generation of foldable devices, highlighting ongoing innovation and market growth. Although early movers like Samsung have established a foothold, Apple’s approach appears more deliberate, having monitored early product weaknesses before entering the foldable segment.
One significant challenge for foldable phones lies in their production costs. The increasing demand for chips driven by AI data centers has led to higher component prices, which weigh heavily on devices requiring expanded screen space and enhanced performance capabilities. Apple’s foldable phone is expected to carry a price tag exceeding $2,000, reflecting the premium nature and complexity of the device. Adjusted for inflation, this price is comparable to Samsung’s initial foldable release in 2019, which was priced around $2,600.
Industry analysts point to strong consumer interest in foldables, especially when new models deliver substantial feature improvements. Samsung’s latest foldable launch last month reportedly saw an 8% increase in sales compared to its previous generation, according to Counterpoint Research. For Apple, foldables could represent a significant new revenue stream. Morgan Stanley has forecast sales of approximately 6.5 million units within the first three months post-launch, which could constitute roughly 16% of Apple’s total iPhone sales during that period.
The introduction of a foldable iPhone may also have broader financial implications. Analysts at Arete suggest that the product could enable Apple to incrementally raise the prices of its other iPhone models by $100 to $200 in 2027, offsetting rising component expenses.
Despite Apple’s anticipated impact, competition in the foldable market is intensifying. Chinese manufacturers Huawei and Xiaomi launched their latest foldable models earlier this week, maintaining strong positions in the country that currently hosts the largest foldable user base. Breaking into the Chinese market remains a complex challenge for Apple due to entrenched domestic competitors.
Outside of China, Apple’s loyal customer base and brand influence are expected to drive initial sales of the foldable device. The company is betting that consumers will embrace the new form factor and premium pricing, particularly for enhanced AI-driven functionalities that leverage the increased display area and processing power.