Apple’s biggest iPhone redesign in a decade has given investors a new hardware story, but the real test will be whether its first foldable device can attract consumers at scale while protecting margins and advancing its artificial intelligence ambitions, according to Josh Gilbert, Lead Analyst, APAC & Middle East at eToro.

The launch marked John Ternus’ first major product showcase as Apple CEO. Shares swung during the event before finishing broadly flat, a response Gilbert views as relatively encouraging following a roughly 40% rise over the past 12 months.

“Investors had already bought into the foldable story, so finishing practically flat is a fairly decent result given recent history,” said Gilbert. “Ternus has come through his first big test, and the initial market reaction suggests investors are receptive to what Apple’s longstanding hardware leader has delivered.”

A premium price meets a volume challenge

The iPhone Duo starts at US$1,999, rising to US$3,199 for the highest configuration. In the UAE, prices range from AED 8,499 to AED 13,599, with pre-orders opening on October 16 and availability beginning on October 23. The UAE is included in the first wave of launch markets.

Gilbert noted that monthly leasing could help lower the upfront barrier to purchase, but the device’s commercial success will depend on demand beyond Apple’s most devoted customers.

“The challenge for Ternus is persuading consumers to spend that money on a new device at scale,” he said. “For the Duo to make a meaningful contribution, it needs to ship in volume. A place in the product line-up alone will not be enough.”

AI remains an unfinished story

Despite the significance of the hardware launch, Gilbert saw less progress in Apple’s broader AI proposition. The presentation largely built on the Siri and Apple Intelligence work shown in June, with Ternus positioning the iPhone as an intelligent personal hub and introducing Siri Recaps on Apple Watch.

“The disappointment for me was the lack of a major fresh AI announcement,” Gilbert said. “Apple’s message is that the devices consumers already own will be their route to AI. The bigger question is how effectively third-party apps connect with Siri, because that will determine how useful the experience becomes.”

Margins face the harder test

For investors, Gilbert believes profitability deserves closer attention than headline device prices. He pointed to weaker gross margins last quarter and rising memory costs as pressures that Apple’s latest price increases may struggle to offset.

Apple added US$100 to the Pro and Pro Max, below the increases the market had anticipated, while also raising prices by US$100 across the existing iPhone 16, 17e, 17 and Air models.

“The Duo’s engineering does not come cheap. Two displays and extensive miniaturisation add to the cost, while memory prices remain a headache,” Gilbert said. “The increases Apple has pushed through look modest against those pressures. That is the concern for margins from here.”

Looking ahead, Gilbert sees the launch as an early indication of the priorities that could define Apple under Ternus. “If Cook’s decade was about services, Ternus’ looks set to be about devices and getting more Apple products into more rooms,” he said. “But investors are still waiting for a clearer step forward on AI. Apple has put a builder in charge; now the test is whether that hardware expertise can deliver the growth the market expects while competitors accelerate their AI efforts.”