Apple’s unveiling of the foldable iPhone Duo has drawn attention not just to the device but to its pricing strategy, marking a key test for new CEO John Ternus. Rising memory chip prices, driven by data centre demand, are expected to cut global smartphone sales by 14% this year compared to 2025, according to Counterpoint Research. Apple sold roughly 250 million iPhones last year, half its total revenue, but faces pressure to maintain affordability as the iPhone nears its 20th anniversary.

The Duo, a passport-sized device unfolding to an iPad mini–sized screen, aims to boost average selling prices while proving hybrid devices can go beyond a niche. Ternus has tempered price increases, setting the Duo’s starting price just under $2,000 and raising iPhone prices by $100 across the board—less than analysts expected—to balance volume and margins. Services now make up over a quarter of Apple’s revenue and drive most growth.

The real challenge for Ternus lies not in hardware design but in delivering useful AI features, such as a more capable Siri and a new Apple Watch function that transcribes conversations into notes without recording audio. Success will depend on product design, user education, and mastering AI to enhance everyday phone use.