Apple Inc. (NASDAQ:AAPL) entered September with two things to prove: that it could still surprise consumers with new hardware and that its slow start in generative AI had not left it permanently behind. Its first major product event under CEO John Ternus offered an answer to both. Apple unveiled the iPhone Duo, its first foldable smartphone, alongside the new iPhone 18 Pro lineup, while putting Siri and on-device artificial intelligence at the center of its pitch.
DON’T MISS: Xiaomi and Huawei Launch Foldable Smartphones Ahead of Apple’s Latest Product Launch
For investors, the significance of the event goes beyond another iPhone cycle. It offers the first real look at how Ternus intends to differentiate Apple as he inherits a company with a massive installed base but considerable pressure to show that it can compete in the AI era.
Bull Case
The iPhone Duo introduces a new form factor to Apple’s (NASDAQ:AAPL) smartphone lineup. The passport-shaped device opens into a 7.6-inch inner display and features a 5.4-inch outer screen, while its larger display allows users to run two apps side by side. It is powered by Apple’s new A20 Pro chip. Pricing may also be more competitive than investors expected before the launch. The Duo starts at $1,999, compared with the more than $2,500 price analysts had anticipated ahead of the event. Samsung’s Galaxy Z Fold 8 starts at $1,899 at comparable base storage levels, putting Apple’s first foldable roughly $100 above its established rival.
AI is the other major part of Apple’s (NASDAQ:AAPL) strategy under Ternus. At the September event, he positioned privacy as a key differentiator, describing the iPhone as an intelligent personal hub that handles AI services on-device whenever possible. Apple uses its Private Cloud Compute system when additional cloud processing is required. Siri AI has also begun rolling out in beta. Apple says the new assistant can use personal context, on-screen awareness, and broader world knowledge, while Reuters reported that it will work with more than 300,000 apps at launch and can take actions across Apple and third-party applications.
READ ALSO: Xiaomi’s New Chip Could Strengthen Its Premium Push, But the Timing Could Be Risky
Bear Case
Apple may have finally entered the foldable market, but it is arriving years after its biggest competitors. Samsung launched its first mass-market foldable in 2019 and has since released eight generations. It also enters Apple’s (NASDAQ:AAPL) first foldable cycle with advantages in experience, manufacturing scale and global distribution, according to Counterpoint.
The category itself has also remained relatively small. Before Apple’s launch, IDC’s Nabila Popal told Reuters that foldables still accounted for a single-digit share of the overall smartphone market. She estimated that Apple’s foldable could generate more than $45 billion in revenue by the end of 2027, but that was an analyst projection rather than Apple guidance. AI brings another challenge. Reuters reported before Ternus took over that Apple’s products had lagged in AI features, including delays to the Siri overhaul. The new Siri gives Apple a more concrete product with which to address that gap, but its initial geographic availability remains limited.
Apple says Siri AI will not initially be available in the European Union on iOS, iPadOS, and watchOS. The company also says Siri AI and its other new Apple Intelligence features are not currently available in China while it works through regulatory requirements. Those restrictions leave two major markets outside the initial Siri AI rollout.
Conclusion
Ternus’ first major product launch gives Apple investors something tangible to watch on both hardware and AI. The Duo is Apple’s first foldable iPhone, while Siri AI has finally begun rolling out after delays that had become part of the debate around Apple’s position in artificial intelligence. But announcing the products is different from proving their commercial impact. The Duo starts at $1,999 and goes on sale October 23, when investors will begin getting a clearer picture of how consumers respond to Apple’s entry into a category that has so far remained relatively small.
Siri faces a different test. Apple has given the assistant new capabilities and access across hundreds of thousands of apps, but its initial absence from the EU and China limits the reach of that rollout. Apple has now shown investors what the early hardware-and-AI strategy under Ternus looks like. The next thing to watch is whether the Duo can expand Apple’s presence in foldables and whether Siri AI can turn Apple’s huge device ecosystem into an advantage in the AI race.
READ NEXT: Can Eli Lilly Catch Novo Nordisk in the Oral GLP-1 Race? AND Abbott vs. Intuitive Surgical: Is Consistent Growth Better Than Premium Growth?
This article is originally published at Insider Monkey.
Hedge Fund Resource Center