Apple's annual fall product launch is expected to feature two firsts: the company's inaugural foldable phone and the debut appearance of its new Chief Executive Officer, John Ternus. Ternus succeeded Apple's long-time leader, Tim Cook, on September 1.
Apple has dubbed the event "Surprise and Shine." It is scheduled to begin at 1 p.m. Eastern Time on September 9 at its headquarters in Cupertino, California. The annual unveiling gives the tech giant an opportunity to showcase its latest devices, which typically go on sale just days later.
Can Apple Deliver on AI Progress?
This year's launch carries significant expectations. Sales growth for its flagship product, the iPhone, is slowing. With about 158 million iPhones in the U.S., covering over half of American adults, convincing consumers to upgrade to a more expensive phone could prove more difficult this year, as many households face payment pressures due to rising costs for everyday items like gasoline and groceries.
Melissa Otto, Head of Research at S&P Global Visible Alpha, told CBS News that Apple is seen as a laggard in the AI field compared to competitors like Alphabet, and the company also needs to demonstrate progress to Wall Street.
Otto said, "The market is generally disappointed that Apple hasn't truly engaged in this AI boom. So, we're wondering, where are they heading next, and how will John Ternus lead the company there?"
She added that Wednesday's event is an opportunity for Apple to "truly differentiate itself—why is their foldable phone better? Why should consumers get involved?"
Otto noted that Apple is also expected to unveil a new iPhone 18 with enhanced Siri features, along with updates to AirPods and the Apple Watch. Apple did not immediately respond to a request for comment.
Fold When It's Time to Fold
The biggest new product is likely to be Apple's first foldable phone. According to industry media MacRumors, the device might be named iPhone Ultra.
Dan Ives, Partner and Analyst at Yorkville Ives, told CBS News: "We believe a foldable product could become a hit for Apple. It's the right time to open a new chapter in hardware under Ternus's leadership. It's long overdue and well-suited to leverage Apple's vast base of premium existing users."
Foldable phones have not gained widespread popularity in the U.S. but are quite popular in Asia, where Chinese company Huawei and South Korea's Samsung have offered such devices for years. Otto pointed out that foldables typically offer larger screens, making them attractive to users who want to stream content on their phones.
Tech consultancy IDC sees another advantage for foldables: it's the only smartphone segment projected to grow by 2026. IDC estimates that Apple's entry into the market will help drive foldable device sales up by 13% this year to 22.9 million units.
Meanwhile, the smartphone industry as a whole faces significant headwinds. IDC forecasts a 16.7% decline in total smartphone shipments this year. The firm attributes this to memory chip shortages driving up prices, causing some price-sensitive consumers to forego phone upgrades.
While Apple hasn't announced pricing for the new phone, analysts expect the foldable device to be more expensive than a standard iPhone. A Bloomberg report on Tuesday suggested the new foldable could be priced around $2,000.
By comparison, Apple's current top-of-the-line iPhone 17 Pro Max starts at around $1,200.
"A Big Pair of Shoes to Fill"
Analysts say investors will also be assessing Ternus's early performance. During Cook's 15-year tenure, Apple's annual revenue grew more than fourfold to over $416 billion, and its market valuation soared to over $4.7 trillion, making it one of the world's most valuable publicly traded companies.
Ives said, "This is key for Ternus to put his stamp on Cupertino, and it all starts this week. Ternus is stepping into a big pair of shoes left by Cook, and this event is very important for him."
According to Apple's information, Ternus joined the company's product design team in 2001 and spent most of his career in hardware, involved in the launch of new product lines like the iPad and AirPods. Apple also stated that he contributed to the company's material innovations, including developing a new recycled aluminum alloy.
Patrick McGee, author of "Apple in China" and a contributor to CBS News, said earlier this month: "He is a hardware engineer, deeply involved in the nitty-gritty of how products are made."
McGee added, "My concern is that he is more involved in the less glamorous aspects of the product, like making it more durable and resilient; whereas many in the Apple ecosystem are hoping for a visionary product leader who can bring back the sparkle to the company."
