Ternus made his debut with the launch of the foldable iPhone. Priced at 15,999 yuan, this model continues the upward pricing trend of the Cook era, while its seven-year delayed entry into the foldable market represents a lingering impact from that period. However, the pressing question remains: For each iPhone Duo sold, the most certain profit does not go to Apple—instead, Samsung secures $270 to $290 first. This performance earns a score of 65: passing, but not impressive.

On September 9, Apple held its autumn event as scheduled, marking the first complete event since John Ternus officially assumed the role of CEO on September 1. The market reaction was subdued—Apple's stock closed down 0.28% on the day, dipping nearly 2% at one point before recovering slightly after the event. The question now is: Has Ternus delivered a robust continuation of the Cook era or forged a new path of his own?

01 What Happened at the Event

Themed "Surprise and Shine," the event introduced five new hardware products: the first foldable iPhone Duo, iPhone 18 Pro/Pro Max, AirPods 5, Apple Watch Series 12, and Apple Watch Ultra 4.

Image Source: Internet

The iPhone Duo was the centerpiece of the event. As Apple's first foldable smartphone, it features a horizontally folding "book-style" design with a 5.4-inch outer screen and a 7.6-inch inner screen when unfolded, setting a new record for iPhone screen size. The 256GB China version is priced at 15,999 yuan, while the top-tier 2TB version costs 26,499 yuan. Pre-orders begin at 8 PM on October 16, with official sales starting on October 23. Powered by the 2nm A20 Pro chip, it boasts an under-display camera for a true full-screen experience and supports the Apple Pencil. Currently, the iPhone Duo only supports eSIM, with no physical SIM slot—meaning even if you purchase the Hong Kong version, eSIM may not work in mainland China.

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For the first time this year, Apple did not update the standard iPhone 18 in the fall. The standard version, along with the iPhone 18e and iPhone Air 2, has been postponed to spring 2027, with the fall event fully dedicated to the Pro series and foldable models. The widely anticipated Apple AI smart glasses did not make an appearance at the event. According to previous leaks, the product, codenamed N50, has finalized four designs and is expected to launch in late 2026 or early 2027, with a formal release in 2027.

Image Source: Internet

02 What Continues

The rhythm of hardware iteration remains unchanged. The iPhone 18 Pro series continues the design philosophy of its predecessor, the iPhone 17 Pro, with upgrades focused on chips, battery life, imaging, and other conventional dimensions. The 2nm process of the A20 Pro, a 40% improvement in GPU performance, and enhanced neural engine capabilities—these parameter advancements align with the Cook-era strategy of steady annual upgrades.

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The pricing strategy of "moving upward" also remains unchanged. The starting price of 15,999 yuan for the iPhone Duo sets a new ceiling for iPhone pricing, but this is not reckless—Apple has already been pushing price boundaries with the Pro and Pro Max models during the Cook era. The iPhone Duo simply extends this logic to the foldable form factor. In the premium smartphone market above $600, Apple dominated 65% of the market share in the first half of 2026, with an average selling price of around 6,200 yuan. Ternus has chosen to build on this foundation rather than start anew.

The supply chain and organizational foundation remain stable. After transitioning to Executive Chairman, Cook will still be involved in some company affairs, including communications with global policymakers. This arrangement—where a "new CEO takes the helm while the former CEO retains influence"—signals that Ternus's first year will focus on "stability" before "change."

03 What Are His Own Moves

What truly indicates Ternus's vision for Apple's future is the absence of the standard iPhone 18. For the first time this year, Apple did not update the standard iPhone 18 in the fall—keeping premium models in the fall while shifting mass-market products to spring means Ternus is splitting the "once-a-year, fall-centric" release rhythm into a "dual-cycle" approach. This could represent a structural change never seen in the Cook era.

The "latecomer strategy" for foldable screens also bears Ternus's distinct mark. Apple entered the foldable market about seven years later than Samsung and Huawei. However, Ternus chose this timing based on a "latecomer defines the market" logic.

The most concrete example is "Duo Preview." When you use the phone to take a photo of someone, the subject can see themselves on the back screen and adjust their expression and pose in real time. Huawei had already implemented this feature, so it's not an Apple innovation. What sets Apple apart is the attention to detail—the crease is nearly imperceptible, and the transition between inner and outer screens is seamless. This reflects Ternus's background as a hardware engineer: not rushing to be first but striving to be the first to do it right.

Image Source: Internet

The AI strategy is being "quietly advanced." Ternus did not lead with AI strategy in his opening remarks but framed AI within the context of "smartphone capabilities." The event demonstrated the new Siri's collaboration with third-party apps—Siri can now cross-software retrieve information, organizing and accessing school emails and notifications in real time. The 32-core NPU in the A20 Pro, a 50% improvement in memory bandwidth, and enhanced thermal materials for better cooling are all foundational capabilities prepared for these on-device AI scenarios.

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At WWDC 2026, Apple already announced the next-generation Apple Intelligence and the new Siri AI, introducing a collaborative architecture with Google Gemini. Ternus chose to "act without declaring" at the fall event, integrating AI capabilities into specific usage scenarios rather than highlighting them separately—this product-driven approach, rather than a strategy-driven one, aligns with his hardware engineering background.

The split release rhythm is not just about "filling spring slots." Over the past decade, the standard iPhone has been Apple's entry point for average users. This year, that entry point is gone—if you want a new iPhone, you either pay more for the Pro or wait until next spring. Apple is downgrading affordable models from "fall mainstays" to "spring supplements," prioritizing the best release resources and supply chain capacity for higher-margin product lines. Some analysts point out that Apple's move pushes users who might have bought the $5,000–$6,000 standard model toward the $8,700-starting Pro series. This is not a simple scheduling adjustment but a fundamental shift in average selling price strategy. Synchronized with this strategy is Apple's "clearance" of older models: the iPhone 17 Pro and Pro Max were removed from the official website, while the base iPhone 17 saw an 800 yuan price hike, and the iPhone 16 returned to its 5,999 yuan launch price. By eliminating mid-range options and blocking low-price retreats, Apple is "pushing" users toward more expensive new products.

The iPhone 17 Pro and Pro Max have been removed from the official website. Image Source: Apple China Official Website

Thus, Ternus's choice is to use hardware premiums to offset growth anxiety in the AI era. Delaying the standard model to spring 2027 is essentially waiting for memory prices to drop before pricing volume models. By reserving the fall event for premium products only, Apple is transforming the "Apple event" into a "pure premium show"—every attendee is a high-average-selling-price user.

Cook considered this but did not act. Under Cook, growth was sustained through service ecosystems and volume models, eliminating the need for such user "filtering." Ternus acted because he needs faster hardware monetization to prove himself.

04 Whose Pockets Are the Profits Going To?

Before evaluating this performance, a more fundamental question must be answered: For each iPhone Duo sold, the most certain profit goes not to Apple but to Samsung.

The foldable OLED panel for the iPhone Duo is exclusively supplied by Samsung Display, with a per-unit value of $220 to $240. According to industry estimates, the foldable panel accounts for a significantly higher proportion of the total bill of materials (BOM) cost compared to the ~16% for traditional iPhone Pro models—pushing the screen from the "second most expensive" component to the "most expensive." Samsung Display's global market share in foldable OLED panels is expected to reach 61.9% in 2026, with Apple as one of its first major clients. Samsung does not need to compromise on pricing because BOE has not yet entered Apple's foldable supply chain.

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Memory is the second major cost. The iPhone Duo is equipped with 12GB LPDDR5X memory, with Samsung Electronics and SK Hynix supplying 70% combined and Micron supplying 30%. According to a report by Caixin Securities, the price of 12GB LPDDR5X modules has nearly doubled from around $77 a year ago to about $146. Samsung accounts for ~35% to 37% of this supply, meaning that for each iPhone Duo, ~$51 to $54 of the memory cost goes to Samsung Electronics.

Image Source: Internet

Combined, the screen and memory account for an estimated $270 to $290 of the per-unit BOM cost going to Samsung.

More critical than the number is its nature. Apple bears all the risks and costs of designing the entire device, developing hinges, adapting software, marketing channels, and after-sales service for the foldable iPhone. Samsung supplies panels and memory without bearing the risk of whether the iPhone Duo sells, whether users return it, or whether Apple's brand reputation is affected. Apple is betting on the category's success, while Samsung earns by "collecting component payments regardless of your success."

Samsung Display's pricing power in foldable panels comes from its exclusive supply status. Apple relies on Samsung for foldable screens because there are currently no mass-producible alternatives. BOE has appeared in multiple Android flagships, but Apple's standards for yield and crease control can currently only be met stably by Samsung Display.

Apple's investments in Micro LED and self-developed display driver chips are long-term hedging strategies, but they will take three to five years to materialize as actual alternatives in foldable screens.

However, the hardware strategy of "pushing customers away" is only half of Apple's profit logic. The other half lies in services. Revenue from the App Store, iCloud, Apple Music, Apple TV+, and other services exceeded $109 billion in fiscal 2025, with a significantly higher gross margin than hardware. Apple's true profit engine is service revenue driven by hardware installed base, not the material cost difference of individual phones.

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Samsung earns "certain revenue from the manufacturing process," while Apple earns "long-term compound interest from its ecosystem." These two calculations are not on the same dimension.

05 65 Points: Pass, but Fails to Answer 'Why'

Back to Ternus. My judgment: 65 points, a pass but not impressive. This is not the result of precise calculation, but rather an answer to a simple question: After the event, did the market's expectations for Ternus rise or fall? The answer is the latter.

Ternus hasn't provided his own "Why." During Cook's era, every Apple product had a clear "Why"—the iPhone X's Face ID answered "what is the future of interaction," and AirPods answered "wireless is freedom." What is the "Why" of the iPhone Duo? A more expensive iPhone? Or "folding equals efficiency"? Ternus did not answer.

From an investor's perspective, this event did not answer a core question: Where is Ternus taking Apple? The AI features demonstrated at the event—Siri's cross-app information retrieval and real-time organization of school emails—are routine iterations, with no unexpected AI interaction highlights. If he comes from a hardware engineering background and chooses to invest in more aggressive technology to build long-term barriers, short-term profits may be compressed; if he continues Cook's profit-first logic, then the foldable screen is just another high-priced product, not a strategic turning point.

So, the question arises: Is Ternus assisting Cook in crafting the final iPhone, or is he embarking on the journey to create his inaugural iPhone? What are your thoughts? Feel free to join the discussion in the comments section.

The data presented in this article is sourced from official Apple event content, as well as from Counterpoint, Bloomberg, The Elec, UBI Research, Caixin Securities, and publicly accessible supply chain information.

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