Apple is set to unveil a foldable phone under new hardware chief John Ternus, aiming to leverage AI capabilities to drive premium sales. Though late to the foldable market—where Samsung leads with its eighth iteration—Apple plans to capitalize on lessons from early movers’ missteps. The device is expected to cost over $2,000 due to increased memory and chip demands from AI-enhanced features, though historical pricing suggests Samsung’s 2019 model would be $2,600 today adjusted for inflation.

Novelty and feature upgrades could attract buyers, with Samsung’s latest foldable series seeing an 8% sales increase over its predecessor. Morgan Stanley projects Apple could sell 6.5 million foldables in three months, equating to 16% of total iPhone sales, with a potential halo effect allowing Apple to raise iPhone prices by $100–$200 in 2027 to offset rising component costs. While competition from Huawei and Xiaomi and strong foldable adoption in China pose challenges, Apple’s brand loyalty and hype may drive success elsewhere, validating consumer willingness to pay for premium AI-capable devices.