Apple's $1.999 foldable iPhone begs the question: Who is it for?

Apple's new foldable iPhone, unveiled Wednesday, packs impressive features and a hefty price tag, starting at $1.999 in the U.S. But some in the audience at the launch event in Cupertino, California, wondered who the device was really aimed at, other than wealthy tech enthusiasts.

Apple executives demonstrated how the iPhone Duo runs various apps on an extended screen, including Zoom, Slack, and Netflix, showcasing its capabilities for work, content creation, and entertainment.

Apple's new CEO John Ternus said that "a larger screen that feels as natural and intuitive as the iPad" will open up the possibility of the iPhone Duo becoming a personal center for users' artificial intelligence, Reuters reports.

"Apple doesn't usually define who the customer is, but in this case they were particularly evasive," said Carolina Milanezi, an analyst at Creative Strategies.

Analysts say the strength of Apple's brand is enough to ensure strong initial sales of the iPhone Duo. But once the initial euphoria wears off, they warn that the device's high price tag and Apple's lack of a clear vision for its target customer could limit it to a narrow group of wealthy early adopters - a problem that has dogged the flip phone category since its inception.

Flip phones will account for less than three percent of the global smartphone market in 2026, according to research firm IDC, which does not expect that share to change significantly in 2027, even after Apple enters the market.

"There were definitely some positioning errors," said Neil Shah, vice president at Counterpoint Research. "We weren't clear on whether the device was for work or entertainment, but I think the iPhone has always been a versatile device."

The question of purpose

Opting for a broad marketing strategy, Apple has not clearly defined the target group it expects to spend money on a phone that will cost $3.199 in the US, in the version with the highest memory capacity.

When Apple co-founder Steve Jobs introduced the iPad in 2010, he positioned the tablet as a new category of device - a powerful tool for consuming media and entertainment content.

By 2015, then-Apple CEO Tim Cook was positioning the new Pro line of tablets as a tool for creative professionals.

The Apple Watch, which the company initially tried to position as a fashion product, has over time developed into an indispensable companion for monitoring health and physical activity.

Apple struggled with the initial positioning of its Vision Pro augmented reality device in 2023. Analysts praised the technology back then, but expressed skepticism over its high price and lack of a clear purpose beyond entertainment, Reuters reports.

Accumulated demand

Counterpoint's Shah estimates that Apple will still sell close to six million iPhone Duos by the end of the year, thanks to pent-up demand from existing iPhone users. Those sales alone would give Apple a quarter of the global flip phone market, Shah said.

Samsung, the current leader in the flip phone market, has been selling such devices since 2019, while companies like Alphabet's Google and China's Huawei also offer their own models.

Samsung has overcome the problems that accompanied the launch of its first foldable device, which some dubbed "foldgate" after numerous reports of broken screens and parts of the device detaching. According to Counterpoint, Samsung now holds 40 percent of the market, and in July it unveiled a redesigned flip phone that opens like a passport.

The device outperformed previous models and gave added momentum to Samsung's promotional campaign launched in response to the iPhone Duo, in which it mocks Apple for "heating up our leftovers."

However, market growth has slowed in recent years as foldable devices have failed to attract customers beyond a relatively narrow user base.

Apple's entry into the market is expected to bring the highest annual growth in foldable smartphone shipments since 2021, according to technology research firm Omdia, which estimates that 22,3 million such devices will be shipped in 2026.

Bob O'Donnell, principal analyst at TECHnalysis Research, said the iPhone Duo's high price narrows the pool of potential buyers, especially among young people, but that Apple's most loyal users will drive initial sales.

"It's going to be something that people are going to crave," he said. "It's going to be a status symbol for a while, because I think it's going to be hard to get."