Apple has made its biggest change to the iPhone in nearly two decades, unveiling its first foldable model as new chief executive John Ternus makes an early and costly bet on a product that could reshape the company’s flagship device.
Ternus, who took over from Tim Cook and is now in his second week as Apple’s chief executive, took centre stage at the company’s annual product launch on Wednesday, where the new foldable iPhone was presented as the latest major step in the evolution of the device.
Called the Duo, the phone uses a book-style design and becomes the largest iPhone when opened. It will also be the most expensive, with prices starting at $1,999 (£1,475) in the US and rising to $3,200, while the UK starting price is £1,999.
Ternus described the Duo as being "inspired by the iPad" while saying its folding system was "fluid and completely intuitive."
Apple has been working on the foldable device for several years. When opened out, the Duo resembles a small iPad, while folding it in half gives it the appearance of a wider iPhone.
The new chief executive said Apple had deliberately sought to avoid the design used by other foldable smartphones, arguing that some existing models "feel like two phones stuck together... making a larger screen feel much smaller."
Instead, Ternus said the Duo was the "result of a series of remarkable innovations that we think will redefine the experience of using a foldable phone."
His close involvement with the project gives the launch added weight. Ternus spent years as a senior executive in Apple’s hardware division before being selected earlier this year to succeed Cook.
Technology research firm FDM CCS Insight chief analyst Ben Wood said the timing of Ternus’s promotion was likely linked to the launch of the new iPhone, describing it as potentially "one of the biggest iPhone launches for many years".
"Nothing happens by accident at Apple," Wood added.
Creative Strategies analyst Carolina Milanesi, who attended Wednesday’s event, said the amount of attention given to Ternus made it seem "almost like he was a product himself."
The redesign comes as Apple faces questions over whether it has produced another major hit or breakthrough product on the scale of the original iPhone, launched in 2007.
Forrester analyst Dipanjan Chatterjee warned that the high price could limit the appeal of the new phone.
"The foldable risks becoming a premium-priced ornament in the portfolio, imparting badge value but not meaningful growth," he said.
The price is a major jump for Apple's flagship range. Before the Duo, the highest starting price for the newest iPhone was $900 (£664).
Apple also unveiled the iPhone 18 Pro and iPhone 18 Pro Max, with US prices beginning at $1,199 (£855) and $1,299 (£959), respectively.
Chatterjee said the Duo could struggle in a way similar to Apple’s Vision Pro headset, which was launched at $3,699 (£2,729) but has failed to attract large numbers of buyers. However, he said the foldable could also follow the path of the Apple Watch, which has not matched the iPhone’s popularity but is still purchased by millions of people every year.
Apple also faces the challenge of changing habits built around the traditional iPhone. Milanesi said many consumers were interested in foldable devices, but warned that moving from a standard smartphone to a foldable comes with a real adjustment in how the device and its software are used.
"Foldables are interesting devices", Milanesi noted. "A lot of people are intrigued by it, but the software and the learning curve that you have from moving from a traditional phone to a foldable is real."
The wider foldable smartphone market remains relatively small. Wood said devices from manufacturers including Samsung and Huawei currently account for only 2% of smartphone sales.
Even with Apple’s entry expected to increase interest in the category, sales are forecast to reach only 4% of the overall smartphone market over the next decade, according to data and analytics firm FDM CCM Insight.
The stakes are high for Apple because the iPhone remains its biggest-selling product and generates more than half of the company’s annual sales.
In recent quarters, Apple has said demand for the iPhone remains strong, with the latest version becoming its most successful product launch.
Alongside the hardware announcements, Apple also provided more details about its planned overhaul of its Siri voice and chat assistant, now known as Siri AI.
From the iPhone 18, Siri AI will be able to search information across a user’s phone, including messages and emails, before answering questions and carrying out tasks on the owner’s behalf.
Some of the new Siri AI functions will also come to the Apple Watch. These include taking notes from conversations and transcribing them when the wearer enables the feature.
Ternus described the new AI capabilities on the iPhone as an "intelligent personal hub", while acknowledging that the technology would make use of "the most private details of your daily life."
He said Apple would keep the information private, with many AI functions running "on device" rather than through outside companies. Where an external service is needed, Ternus said the information would remain private on a remote server, or cloud.
"Others see that data as something to collect and store", Ternus said. "Here, not even Apple can access what's yours."