Apple is no longer the bleeding edge innovator it once was, preferring to observe and refine technologies pioneered by its rivals before integrating them into its iconic devices. The much-anticipated foldable iPhone exemplifies this strategy. While foldable smartphones have been on the market since 2019, Apple is expected to make its grand entrance later this year.
Despite facing reported technical hurdles related to design and durability, the tech giant is still tipped to unveil the foldable iPhone in September, coinciding with its traditional iPhone launch event. This premium device is expected to command a price tag exceeding $2,000, positioning it as Apple’s new flagship offering.
While some might question the excitement surrounding a seven-year-old technology, the foldable iPhone presents a novel experience for Apple’s devoted user base. The company benefits from exceptional customer loyalty, making it notoriously difficult for users to break free from the Apple ecosystem. This captive audience suggests that the foldable iPhone could be a commercial success, even if the broader US market remains unconvinced about the format.
The launch of a foldable iPhone alone is not a sole reason to invest in Apple shares, but it could certainly boost sales. The higher price point of these devices means that every upgrade contributes significantly to revenue. However, the key market for the foldable iPhone isn’t the US; it’s China.
China is the world’s largest market for foldable smartphones, with sales experiencing rapid growth. Apple has also witnessed a resurgence in popularity in China, partly fueled by the success of its new orange-coloured iPhone.
Ultimately, any Apple device that expands its user base is a significant win. While Apple has cultivated a powerful brand synonymous with premium smartphones and electronics, the core strength of its business model lies in its ability to lock customers into its ecosystem. Once embedded, users are more likely to purchase high-margin subscriptions and services, ranging from additional cloud storage to Apple Music subscriptions. Furthermore, Apple Pay, the world’s leading digital wallet, continues to be a major driver of growth.
