Apple on Wednesday unveiled its long-awaited foldable smartphone, the iPhone Duo, during a product event that also marked the first public appearance of new CEO John Ternus. The company used the occasion to roll out next-generation iPhones, AirPods, and Apple Watches, but the foldable took center stage with a starting price of $1,999 for 256GB of storage and $3,199 for a 2TB model.
Dubbed “Surprise and Shine,” the event was the first major test for Ternus, who took over from Tim Cook just a week ago. Cook made a cameo in the opening video, joking that the spotlight should fall on Ternus, not him. Ternus, a 25-year Apple veteran who previously led hardware engineering, emphasized his design-first approach in his debut remarks.
iPhone Duo: A New Form Factor
The iPhone Duo is a book-style foldable, roughly the size of a passport when opened, featuring a bendable display that Apple says is the largest iPhone screen ever produced. It represents Apple’s most significant hardware shift since the Vision Pro headset launched in 2023. The device is available for preorder starting Oct. 23.
“Others have created foldables that just feel like two phones awkwardly stuck together,” Ternus said. “This results in a square screen that’s rarely suited for the way people use them.” The Duo, he added, “will redesign the experience of using a foldable phone.” When open, users can multitask across multiple screens and drag content between them, much like desktop windows. According to Apple, the display is 50% larger than the new iPhone 18 Pro Max and 80% larger than the iPhone 18 Pro.
Price Hikes Across the Board
Beyond the Duo’s premium price, Apple raised prices on its entire iPhone lineup. The iPhone 18 Pro starts at $1,199 and the Pro Max at $1,299, while last year’s iPhone 17, iPhone Air, and iPhone 17e saw $100 increases. This marks a departure from Apple’s usual practice of cutting prices on older models when new ones arrive.
Analysts had anticipated the hikes, driven by soaring demand for memory chips amid the AI boom. In June, Apple raised MacBook and iPad prices by $150 to $300. Former CEO Tim Cook had warned earlier this year that price increases were “unavoidable” due to supply constraints.
Ternus Takes the Stage
Ternus’s ascension signals a shift in leadership style. Cook, who focused on operations and supply chain, handed over the reins to a product designer. Ternus played a key role in developing the iPad and AirPods, and his appointment is seen as a bet on hardware innovation. He faces pressure to accelerate Apple’s AI efforts, which have lagged behind rivals like Google and OpenAI.
In his first minutes on stage, Ternus defended Apple’s AI strategy. “AI makes entirely new kinds of experiences possible,” he said, adding that the iPhone serves as an “intelligent hub” that integrates across devices and services. “As your personal hub, your iPhone can do so much more for you because it understands your context,” he said, citing calendar, relationships, and routines.
Privacy as a Selling Point
Ternus also leaned into Apple’s privacy stance amid growing concerns over data collection by AI firms. He emphasized that Apple Intelligence processes data on-device “whenever it can,” and that private cloud compute extends the same level of privacy when greater capability is needed. The company faces scrutiny as competitors race ahead, but Ternus argued that Apple’s integrated approach offers a distinct advantage.
Apple’s stock dipped slightly after the event, as investors weighed the high price points and the company’s AI positioning. Analysts will be watching early sales of the Duo to gauge consumer appetite for foldables at a premium. Ternus’s leadership, meanwhile, will be tested as he navigates trade tensions, including recent pressure from the Trump administration over mapping decisions, and the broader tech policy landscape. With the Duo's debut and the CEO transition, Apple is entering a new era, and the coming months will reveal whether its bet on foldables and privacy-first AI pays off.
