Apple’s foldable debut and price hikes dent shares

Apple unveiled its first foldable smartphone, the iPhone Duo, on Wednesday and simultaneously lifted prices on most of its existing models. The move triggered a modest decline in the company’s share price, which fell about 0.3 per cent after already slipping 1.2 per cent the day before.

Price strategy raises eyebrows

The iPhone Duo starts at $1,999 (about £1,480) and can climb to $3,199 for the top‑end configuration. At the same time, the flagship iPhone 17 now costs $899, up $100 from its launch price last year, while the budget‑friendly 17e rose to $699. The iPhone Air jumped to $1,099 and the two‑year‑old iPhone 16 returned to its original $799 launch price after a brief discount.

Historically, Apple has trimmed prices on older models when new ones arrive. Tim Cook warned earlier this year that rising costs would eventually be passed to consumers, saying “price increases are unavoidable”.

price increases are unavoidable

Foldable entry and market outlook

The Duo expands from a 5.4‑inch display to a 7.6‑inch screen and is powered by the new A20 Pro chip. While rivals such as Samsung, Huawei and Google have been selling foldables for years, Apple’s entry comes at a time when the segment accounts for just 1.6 per cent of global smartphone sales.

Amanda Mitchell, senior telecoms analyst at Globaldata, said Apple is betting its brand can push foldables from niche to mainstream, but called the $1,999‑$3,199 price range “eyebrow‑raising”. She added that the premium partly reflects an industry‑wide memory crunch driven by the AI boom, which has pushed up chip prices for consumer devices.

Analysts note that Apple’s late arrival could be an advantage, allowing the company to refine technology that rivals pioneered. The iPhone 17 range generated more than $170bn in wholesale revenue in its first year, according to Counterpoint Research, giving the new CEO, John Ternus, a solid foundation.

Looking ahead, the market will watch whether consumers accept the higher price points and whether the Duo can achieve scale. If demand proves robust, Apple may sustain its margin expansion; a tepid response could force a recalibration of pricing strategy for future generations.

In the short term, the share dip is modest, and Apple remains up roughly 16 per cent year‑to‑date with a market value near $4.7 trillion. The real test will be how the foldable and the new price structure influence sales momentum in the coming quarters.