Apple shares rise after iPhone Duo foldable debut

Apple ↘ 0.52% shares rose in premarket trading on Thursday after new CEO John Ternus used his first product launch to unveil the iPhone Duo, a $1,999 foldable phone that Wall Street analysts called the company's most ambitious hardware bet in years — though opinions quickly split on whether the device and an expanded AI push can justify the stock's premium valuation.

Analysts Divided on the Foldable Gamble

Ternus hosted Apple's "Surprise and Shine" event on Wednesday at the Steve Jobs Theater in Cupertino, introducing the iPhone Duo alongside the iPhone 18 Pro and Pro Max, Apple Watch Series 12, and AirPods 5. The Duo features a 7.6-inch inner display, a 5.4-inch outer screen, and the same A20 Pro chip powering the Pro models, with preorders opening October 16 and availability set for October 23.usatoday+2

Citi maintained a Buy rating and $365 price target, calling the iPhone Duo the "biggest new hardware category" since the Apple Watch and AirPods. Goldman Sachs ↘ 0.36% was similarly constructive, noting that splitting the iPhone 18 launch from the Duo should support average selling price growth, aided by $100 price increases on the Pro models. Bank of America analyst Wamsi Mohan kept a Buy rating but trimmed his price target to $370 from $380, noting that pricing came in below his estimates — potentially supporting stronger unit sales while creating gross margin pressure as memory costs rise.stocktwits+1

Not all voices were bullish. Oppenheimer reiterated a Perform rating, expecting the Duo to become the most successful foldable phone on the market but cautioning that supply is likely limited to 8 million to 10 million units this year. Needham analyst Laura Martin kept a Hold, arguing that a bigger screen does not address Apple's deeper challenges in AI and warning that the absence of low-end iPhones until spring could crimp near-term unit sales. Morningstar raised its fair value estimate only modestly, to $290 from $285, and said shares remain overvalued at current levels.investing+1

Pricing Tightrope Under a New CEO

The event marked the first major test for Ternus, who formally succeeded Tim Cook on September 1. Barron's News Corp ↘ 0.03% framed the launch as a risky bet on hardware at a time when investors are demanding clarity on Apple's AI roadmap. The company's reimagined Siri, built into iOS 27, was described by Citi as the most important software announcement of the event, but Martin countered that Apple's AI integration felt "too little, too late".barrons+2

The Bull-Bear Balance

Apple trades at roughly 41 times trailing earnings, well above its historical range of 25 to 30. Consensus among 44 analysts puts the mean price target only modestly above the current share price, leaving limited upside if the foldable cycle disappoints. The stock has gained about 15% year to date and more than 30% over the past 12 months. Whether Ternus can convert hardware ambition into a durable AI-driven upgrade cycle will likely determine the next leg for Apple shares — and for that, Wall Street says it needs to see holiday-quarter results.247wallst+1