The iPhone has remained largely rectangular since its 2007 debut, but Apple is expected to unveil a foldable smartphone at its annual product event in Cupertino, Calif., on Wednesday. The device, featuring a bendable display that opens like a book, would mark Apple’s most significant design change in years, according to three anonymous sources familiar with the project. The launch will test Apple’s ability to bring niche technology into the mainstream and serve as an early test for John Ternus, who recently became Apple’s chief executive, to restore the excitement and innovation associated with past iPhone launches.

Foldable smartphones have existed since 2018 but remain a small fraction of the market, with less than 2% of global shipments in 2023. Apple is projected to ship over 12 million foldables next year, representing 5% of iPhone shipments. The base model is expected to cost at least $2,000 due to complex components, nearly double the price of the current iPhone 17 Pro.

Analysts note the high price may limit the usual “halo effect” driving accessory sales, and costs could rise further due to AI-driven memory chip shortages. Apple declined to comment, but industry observers believe a successful foldable iPhone could signal a return to innovative product leadership after years of criticism about stagnation.