Will Apple’s Foldable iPhone Flourish or Flop?
Apple‘s (AAPL -0.28%) new CEO, John Ternus, stepped into the spotlight for the first time this week as he unveiled the company’s first-ever foldable iPhone. It’s been a long time coming for the device, and it will surely be one of the most closely watched product launches in recent history.
Whether this latest iPhone flourishes or flops will have repercussions for investors. The stakes are high, and there are a few key metrics shareholders should watch.
Image source: Apple.
First, the price of the new foldable iPhone is set at a premium even for Apple. Priced above $2,000, the foldable iPhone, called the iPhone Ultra, will set a new standard for both unit sales and demand. Every sale helps Apple grow its margins and reset consumer expectations regarding fairly priced technology.
Secondly, investors should monitor Apple’s supply chain situation. The company may ship only a few hundred thousand units early on. A slow launch may dampen initial revenue numbers even if demand is high.
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Lastly, competition is intense in the foldable phone space. Companies like Samsung and Huawei have offered similar products for a couple of years; if there are any problems with Apple’s foldable design, that will be a huge boost for competition.
On the flip side, a successful rollout of the foldable iPhone paired with high demand and no pushback on the elevated price could mean Apple is poised to dominate a new high-margin category.
This is Ternus’s first big test, and whether the phone flops or flourishes among consumers will have real impacts on the company’s revenue and stock. Fortunately for shareholders, Apple still has real staying power as the preeminent phone of choice in the United States.
We don’t yet know how consumers will receive the phone in the long term, but it won’t make or break the company overall.
