Apple’s new CEO, John Ternus, faces his first major test as he unveils a foldable iPhone during a September 9, 2026, event, marking the first product launch under his leadership and a pivotal move to reshape the company’s hardware strategy.
The launch of Apple’s first foldable iPhone, rumored to be called the iPhone Ultra, represents a defining moment for new CEO John Ternus, who took over from Tim Cook on September 1. The event, held at Apple Park’s Steve Jobs Theater, will debut the device alongside updated iPhone 18 Pro models, signaling a shift in Apple’s product lineup and pricing strategy. The foldable, expected to start at $2,000, aims to challenge Samsung’s Galaxy Z Fold 8 Ultra, which retails for $2,099, while navigating supply chain constraints and heightened competition in the premium smartphone market.
A New Era for Apple: Ternus’ Debut Amid Uncertainty
Ternus, who joined Apple in 2001 and led its engineering teams for years, faces immediate scrutiny as he steps into the spotlight for the first time as CEO. The event, themed Surprise and shine,
will be his first major public appearance in the role, with analysts closely watching how he balances innovation with Apple’s traditional focus on premium pricing. The event will prove to be anything but ordinary,
said Morgan Stanley analyst Erik Woodring, noting that Ternus will unveil the iPhone Fold (Ultra?), alongside the broadest, and most significant, like-for-like iPhone price hikes in company history.
The foldable iPhone’s timing reflects broader industry shifts. Demand for AI-driven chips has created supply chain bottlenecks, pushing smartphone prices higher. IDC predicts a 16% decline in global shipments this year, with average costs rising 27%. Despite these challenges, Apple’s entry into the foldable market is seen as a strategic move to capture a niche but growing segment. Apple’s foldable iPhone is very likely to shift the competitive dynamics both in China and global markets,
said IDC research associate Kiranjeet Kaur, who noted that Apple could capture 31% of the foldable market by year-end and 40% by 2027.
Pricing, Design, and Market Positioning
The foldable iPhone’s pricing strategy has already sparked comparisons to Samsung’s Galaxy Z Fold 8 Ultra. Bloomberg reports the device could exceed $2,000, placing it near the top of the foldable market. This aligns with Apple’s history of premium positioning, though the company has yet to confirm the name or exact price. The design is expected to mirror existing foldables, with a passport-sized form when closed and a larger internal screen, but the key differentiator may be its price rather than a radical redesign.
Apple’s decision to skip an entry-level iPhone 18 in favor of higher-end models reflects a broader trend toward premiumization. The iPhone 18 Pro and Pro Max are expected to feature the latest A-series processor and camera upgrades, while the foldable will likely include AI-powered enhancements, such as an improved Siri. More focused on securing enough components than finding enough buyers,
said Morgan Stanley, highlighting supply constraints as a critical risk. Despite this, Morgan Stanley estimates the foldable could generate $14 billion in revenue in the December quarter.
Stock Performance and Investor Sentiment
Apple’s stock has gained 20% year-to-date as of September 2, outperforming the S&P 500. However, analysts remain divided. Evercore ISI reiterated its Outperform rating with a $365 price target, citing concerns over App Store revenue declines. Meanwhile, Morgan Stanley sees the foldable as a potential growth driver, forecasting strong initial demand despite supply constraints. Apple’s first foldable iPhone is the biggest iPhone form-factor change since iPhone X,
Woodring said, noting that the device could test the company’s pricing power.
Hedge fund interest in Apple has slightly declined, with 169 funds holding positions in Q2 2026, down from 170 in Q1. The stock currently trades at 33.22 times forward earnings, with short interest at 0.80% of the float. Investors are watching whether Ternus can sustain momentum under his leadership, particularly as Apple faces increasing competition from Android manufacturers and pressures from AI-driven hardware demands.
What Comes Next for Apple?
The September 9 event will set the tone for Apple’s 2026 hardware strategy, with the foldable iPhone serving as both a technical and commercial test. If successful, it could redefine Apple’s approach to form factors and pricing. However, challenges remain, including component shortages and the need to justify a $2,000+ price tag in a market where foldables still account for less than 2% of global shipments. As Kaur noted, Foldable phones are not immune to the memory supply shortages, but the relative impact is lower considering these phones are already priced in the higher-range.
For now, the focus remains on Ternus’ leadership and Apple’s ability to innovate under new management. With the iPhone Fold (Ultra?) poised to be the company’s most significant hardware shift in nearly a decade, the event will serve as a critical litmus test for both the CEO and the brand’s future direction.
