Apple Debuts Company’s First Foldable Phone

SPEAKER_1 (0:02)

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This is Bloomberg Businessweek Daily, reporting from the magazine that helps global leaders stay ahead, with insight on the people, companies, and trends shaping today's complex economy. Plus, global business, finance, and tech news as it happens. The Bloomberg Businessweek Daily podcast with Carol Massar and Tim Stenovec on Bloomberg Radio.

Carol Massar (0:32)

Well, Apple's annual product announcement happening today, it all got underway about an hour or so ago. I'm looking at our live vlog. There's so much on it. We should point out, it is the first major product announcement under new CEO John Ternus. Here's what he had to say a little bit earlier.

John Ternus (0:48)

As we look ahead, we see a future filled with enormous discovery and transformation.

AI makes entirely new kinds of experiences possible. An AI can become even more useful when it brings together your life with the apps, services, and products you use every day.

Carol Massar (1:08)

That, of course, was John Ternus, the CEO of Apple earlier today, obviously from the Cupertino headquarters. Let's get to it, a front row to it all. The host of Bloomberg Tech on Bloomberg TV, Ed Ludlow. He's out there in Cupertino. Right here in studio is our own Mandeep Singh, Bloomberg Intelligence, Global Head of Technology Research, right here, as I mentioned, in studio. Hey, Ed, so let's get to it. We've all been kind of hyped up about this foldable phone. Is that what it's all about or is it more about AI at Apple?

Ed Ludlow (1:38)

It's one more thing to reflect on the famous Steve Jobs phrase and it is the foldable iPhone, iPhone Duo. So Bloomberg's reporting completely accurate on the naming. When it's folded up, it has a 5.4 inch display. And when it's unfolded, it is a 7.6 inch display, 50% greater than the iPhone Pro model that they had also unveiled today for the 18th generation. And find this so interesting.

The common thread of all of this, apart from the specifics of the foldable, which we can get into, is John Ternus basically positioning the iPhone as the main device for the AI era, but the whole selling point, the benefit of it is it's personal to you. It has all of your personal data. It can sense the world around you to make the most of that. And they really are positioning this as being the frontier and therefore the foldable a big part of that too.

Tim Stenovec (2:35)

Mandeep, let's bring you in here. Cause I want to get your thoughts on the foldable iPhone as well and where the future of this is going. Because is this supposed to be a new product, under a new CEO? I don't want to call it a gimmick, but is this going to be a side product eventually? Or is the idea here that anyone who has an iPhone now, the next time they upgrade, they're getting a foldable iPhone?

Mandeep Singh (2:58)

Well, I don't know, given the price point. I mean, you know, when you're talking about a two grand price point, I think it's going to be hard for people, a lot of people to upgrade. And look, I can see why they had to price it at that, you know, $2,000, because all of their component prices are going up. So they don't have a choice. I mean, I think they are eating a lot of the memory costs for the older versions of their phone. And iPhone Pro, I think, increased by $100.

But the memory prices probably have gone up more. So from that perspective, it's hard for to see a big upgrade cycle playing out. To me, this is more like a Vision Pro. Some people will buy it. It will be interesting. But this is not going to be a mass upgrade.

Carol Massar (3:45)

Well, I have to say, Mark Urban was so excited leading into this. He writes on the blog, So far, I am blown away by the new interface of the iPhone Duo.

Apple seriously nailed the user interface of the foldable phone here. They knocked it out of the park here. I'm going to bring you back in a moment, Ed. But Mandeep, the Apple brand is iconic. Does this just fold right? No pun intended, but fold into what they are known for. I'm just creating incredible products.

Mandeep Singh (4:12)

It is. When it comes to marketing, there is no better company that knows how to market their products, so there will be a lot of excitement, and I wouldn't be surprised if the Apple Store at 5th Avenue has a long line just to get the new phone. But to my mind, when it comes to a big upgrade cycle, like we saw with iPhone 6 or one of the earlier versions, it had to be either driven by a new feature, like a big camera upgrade or something exciting, and at a reasonable price point. To me, this is too high of a price point for this to drive a big upgrade cycle. But I could be off. For me, the phone could be fabulous. It's just the price point is too high.