CALIFORNIA (Agency Report): Apple is preparing for a pivotal product launch as new CEO John Ternus faces pressure to demonstrate that the company can remain a hardware innovator while closing the gap with rivals in artificial intelligence.
At its headquarters in Cupertino, California, Apple is expected to unveil a foldable iPhone that opens like a passport, potentially giving the company a powerful entry into a market that has so far been led by competitors including Samsung, Google and Huawei. Analysts expect the device to cost more than $2,500, putting it firmly in the premium segment.
Despite the anticipated price, analysts believe the foldable iPhone could quickly become the leading product in its category. Apple may not necessarily offer the most advanced cameras or processors, but its brand strength, large installed base and ability to generate demand around premium products could give the device a significant advantage.
Nabila Popal, senior research director at IDC, said Apple’s ability to create a sense of exclusivity could drive strong demand even at a $2,500 price point. She estimates the foldable iPhone could generate more than $45 billion in revenue for Apple by the end of next year, although foldable devices are still expected to account for only a single-digit percentage of the overall smartphone market.
Apple’s late arrival to the foldable segment could also work in its favour. Samsung, Google and Huawei have been selling foldable phones since 2019, giving Apple years of competing designs to study as it develops its own version.
Among the biggest engineering challenges are expected to be the durability of the hinge and the visibility of the screen crease. Apple is likely to draw on lessons from existing foldable phones to develop a hinge capable of handling thousands of openings while reducing the crease that can appear when the display is unfolded.
“They’ve seen what has worked and what hasn’t worked with their competitors,” said Anshel Sag, an analyst at Moor Insights & Strategy who has tested numerous foldable devices.
Apple is also expected to refresh its premium iPhone Pro and Pro Max models during the launch, while updates to the iPhone Air, base iPhone and budget models are expected to wait until spring. The product strategy is designed to place the foldable iPhone at the centre of attention.
For Ternus, however, the hardware showcase is only part of the challenge. Apple’s progress in artificial intelligence, particularly the long-awaited overhaul of Siri, could prove equally important to his early tenure as CEO.
Apple has already announced a major redesign of Siri, including the use of Google’s AI technology behind the scenes. Analysts see the revamped assistant as an opportunity for Apple to narrow the gap with Google’s Gemini, provided the company can deliver the improvements by the end of this year.
Investors have largely tolerated Apple’s slower progress in generative AI, helped by its installed base of more than a billion devices and a highly loyal customer base. Ternus now needs to persuade users that Apple’s hardware and software ecosystem offers a compelling way to take advantage of AI.
“If Siri still sucked, then he would have a much more difficult Wednesday,” said Carolina Milanesi of Creative Strategies. “Now they can comfortably say Siri is delivering and has value, but they need to just continue to work and make it better and keep up.”
Ternus spent five years as Apple’s hardware engineering chief and maintained a relatively low public profile during that period. Analysts expect his approach to emphasize powerful hardware capable of supporting more AI processing directly on devices.
Regulatory hurdles could nevertheless slow Apple’s AI ambitions in some of its most important markets. Gene Munster of Deepwater Asset Management said the updated Siri could take until 2028 to secure approval in China. The technology is also not expected to initially launch in Europe amid an ongoing regulatory dispute.
Munster said Apple’s ability to deliver the updated Siri in the United States on schedule will be important for restoring confidence in its ability to navigate regulatory requirements elsewhere.
“It matters a lot that they get the U.S. out in time because it builds the confidence that they can do something in Europe,” he said.
The launch therefore represents more than another iPhone upgrade. For Ternus, the combination of a highly anticipated foldable iPhone and a redesigned Siri offers an early opportunity to show that Apple can simultaneously reinvent its hardware and regain momentum in the rapidly evolving AI race.
