Apple's $1,999 foldable iPhone dazzles at launch, but who is it really for?

Cupertino: Apple's new foldable iPhone launched on Wednesday with impressive features and a premium price tag, starting at $1,999 in ​the U.S. market. But some observers in the packed room ​at the launch event in Cupertino, California, were left questioning its appeal beyond wealthy tech enthusiasts.

Apple executives demonstrated the ​iPhone Duo running a variety of apps including Zoom, Slack and Netflix on an expanded display, as they showcased its ability to be used for work, content creation and entertainment.

Also Read: 'Apple enters late but sets the rules': A $1,999 bet on the foldable market with iPhone Duo


New Apple CEO John Ternus highlighted how the "larger display that feels as natural and intuitive as iPad" would open possibilities for the iPhone Duo to serve as a user's personal AI ‌hub.

"Apple doesn't usually define ⁠who the ⁠buyer is, but in this case specifically, they really shied away from it," said Carolina Milanesi, an analyst at Creative Strategies.

Analysts say that Apple's brand cachet is enough to assure strong initial sales of ​the iPhone Duo. But once the euphoria fades, they warn the device's high price and Apple's lack of clear vision of its target buyer could confine it to ​a niche of wealthy early adopters - a pattern that has plagued the category since its launch.

Foldable phones are on track to account for less than 3% of the global smartphone market in 2026, according to research firm IDC, which also does not expect the figure to change much in 2027, even with Apple's entry.

"Definitely ​there was a little bit of a lapse in positioning," said Neil Shah, vice president of Counterpoint ⁠Research. "From our ‌end, it was not clear whether it's for work or play, but I think what iPhone has always stood for ​is being a versatile device."

A ​QUESTION OF PURPOSE

By choosing a broad marketing strategy, Apple did not articulate the intended audience it envisioned would shell ⁠out for a phone that will retail in the U.S. for $3,199 with the highest storage option.

When Apple ​co-founder Steve Jobs launched the iPad in 2010, he framed the tablet computer as forging a new ​category as a supercharged media and entertainment consumption device.

By 2015, then-Apple CEO Tim Cook positioned the tablet's new Pro line as a creative professional tool.

Apple Watch, which the company initially pushed to make a fashion item, evolved into a must-have health and fitness companion.

Apple stumbled out of the gate in 2023 with its Vision Pro augmented reality headset, which analysts similarly lauded for its technology but cast doubts on its high price tag and lack of clear use beyond entertainment.

PENT-UP DEMAND

Counterpoint's Shah estimated Apple would still sell close to 6 million units of the iPhone Duo by the end of the year because it had enough ‌pent-up demand from existing iPhone users. Those sales alone would give Apple a quarter share of the global market, Shah said.

Samsung, the incumbent market leader in foldable phones, has been selling its devices since 2019, and other options are available from the likes ​of Alphabet's Google and ​China's Huawei.

Also Read: The iPhone is about to fold as Apple comes for a market Samsung owned

Samsung overcame a debacle at launch ⁠dubbed by some as "foldgate" that saw wide reports of broken screens and peeling components. It now holds 40% of the market, per Counterpoint data, and unveiled a redesigned passport-style foldable phone in July.

That device has outperformed predecessors and added heft to a publicity campaign Samsung launched in response to the iPhone Duo, ​mocking Apple for "reheating our leftovers."

Still, the market's growth has slowed in recent years after the devices struggled to attract buyers beyond a niche audience.

Apple's entry is expected to provide the biggest year-to-year boon in foldable smartphone shipments since 2021, according to technology research firm Omdia, which has placed its 2026 market forecast at 22.3 million units.

Bob O'Donnell, chief analyst at TECHnalysis Research, said that the iPhone Duo's high price narrowed the potential audience, especially among youth, but Apple diehards would bolster early sales.

"It'll be something that'll be lusted after," he said. "It'll be a status symbol, for a while, because I think it's going to be hard to get."