Apple introduced the iPhone Duo, a foldable phone with a bendable display, on Wednesday. It opens like a book, and when folded, it is similar in size to a passport. When open, users can use two apps at once on a larger screen. The phone starts at $1,999 and will be available on Oct. 23.

John Ternus, Apple's new chief executive, said the Duo "will redesign the experience of using a foldable phone." Foldables have been on the market since 2018 but remain niche, with less than 2 percent of smartphone shipments last year. Ternus, who succeeded Tim Cook last week, emphasized Apple's AI work and called iPhones a "personal intelligent hub."

Apple is establishing a new high-end price point with the Duo, facing a tough market due to memory chip shortages. The company raised Mac and iPad prices in June and expects higher memory costs. Gene Munster of Deepwater Asset Management sees the Duo as part of Apple's strategy to grow iPhone revenue.

Apple also updated traditional models. The iPhone 18 Pro, starting at $1,199, has a new A20 Pro chip and extended battery life. The iPhone 18 Pro Max, at $1,299, offers 48 hours of video playback. Both are $100 more expensive than predecessors.