Apple is expected to unveil its first foldable iPhone on Wednesday during a major product event at its Cupertino, California headquarters, marking the leadership debut of new CEO John Ternus as soaring memory chip costs reshape the consumer electronics market.
Ternus assumed the chief executive role on September 1, succeeding Tim Cook after a 15-year tenure focused primarily on supply chain operations. Ternus steps into the position as component shortages drive up manufacturing expenses across the industry.
Market Dynamics and Pricing Pressures
The device arrives amid a severe shortage of memory chips driven by the explosive growth of artificial intelligence infrastructure. According to financial disclosures cited by AFP, Apple raised prices on Mac computers, iPads, and accessories by $30 to $300 at the end of June, temporarily shielding the iPhone from direct increases. However, Chief Financial Officer Kevan Parekh warned in late July that supply constraints would intensify significantly and eventually impact the company’s primary revenue source.
Market research firm IDC projects that the average selling price for smartphones will surge this year to reach $581, while global shipments contract by a record margin. Within this shrinking landscape, foldable devices stand out as the sole category projected to grow, propelled largely by Apple’s market entry, according to IDC research director Kiranjeet Kaur.
Competition in the Foldable Segment
While Samsung launched its pioneering Galaxy Fold seven years ago, foldable phones remain a niche category accounting for less than 2% of total global sales. Despite the late entry, Kaur estimates that Apple will capture nearly one-third of the 23 million foldable units projected to ship globally this year. Apple’s entry is poised to alter competitive dynamics in both China and international markets.
Huawei introduced its tri-fold Mate XT 2 starting at roughly $4,100 CAD, while Xiaomi released its passport-style 18 Fold starting at roughly $2,200 CAD. According to Kaur, high-end buyers are less sensitive to retail price spikes because many purchase devices through carrier financing or installment plans.
Hardware Lineup and Artificial Intelligence Integration
Alongside the anticipated foldable device, Bloomberg reports that Wednesday’s announcements will feature updates to the hardware ecosystem, including the iPhone 18 Pro, iPhone 18 Pro Max, Apple Watch Series 12, and Apple Watch Ultra 4. Sources indicate the base iPhone 18 model may be delayed until the spring, marking a departure from traditional release schedules.
On the software front, Apple continues to address its lag in artificial intelligence development. Rather than matching rivals’ heavy capital expenditures on proprietary data centers, the company has integrated Google’s Gemini models to power a redesigned version of its Siri assistant, scheduled for rollout in the autumn. The updated AI features will initially be restricted to English-language devices and will remain unavailable in China and the European Union due to regulatory and localization constraints.