Key Takeaways:
- Apple unveiled the foldable iPhone Duo alongside AI-driven watches and upgraded AirPods.
- The device features a new Siri powered by Apple Intelligence and Private Cloud Compute.
- Analysts questioned whether high pricing and delayed features will boost sales.
Apple used its Sept. 9 launch event to put artificial intelligence at the center of its new iPhone Duo, watches and AirPods, as CEO John Ternus seeks to strengthen the company’s position in AI.
Apple makes AI a core part of its new iPhone
Apple introduced the iPhone Duo, its first foldable iPhone, at its headquarters in Cupertino. Starting at $1,999, the device features a 7.6-inch inner display, a 5.4-inch outer display and the A20 Pro chip.
But AI received nearly as much attention as the hardware. Ternus described the iPhone as an “intelligent personal hub” that connects users with AI features across Apple’s product ecosystem.
The company also introduced an updated Siri AI, which uses Apple Intelligence to understand personal context, work with information on the screen and interact with apps. Apple said the system combines on-device processing with Private Cloud Compute to protect user data.
“iPhone Duo is the most transformational change to iPhone since the original,” Ternus said in a statement released by Apple. He said the combination of hardware and software creates new ways to use a foldable phone.
Apple has faced criticism for moving more slowly than competitors in generative AI. The company’s latest event was an effort to show that Apple’s AI strategy now extends beyond a single chatbot or assistant and instead connects several devices and services.
Apple extends AI Across watches and AirPods
Apple also demonstrated how AI will work across its broader device lineup. The new Apple Watch models add features designed to provide users with more personalized health and activity information.
The Apple Watch includes an Insights tab that provides updates on heart data, sleep, vital signs and readiness ratings throughout the day, according to the Yahoo Finance report.
AirPods 5 also gained AI-related functions, including Live Translation and hands-free access to Siri AI. The features position the earbuds as another interface for Apple’s growing AI system rather than simply an audio accessory.
Apple also demonstrated AI workloads on its Mac lineup after the main keynote. The company showed four Mac Studio computers working together to run a model with 1 trillion parameters and demonstrated two separate billion-parameter models running on a Mac mini.
The demonstrations broadened the message beyond the iPhone and showed how Apple sees AI operating across its hardware portfolio.
Analysts question AI’s impact on sales
Despite the expanded AI push, analysts say the technology may not immediately change Apple’s sales trajectory.
“Has the lack of global advanced Siri AI or even Apple Intelligence hurt iPhone sales? Not really,” said Gerrit Schneemann, principal analyst at Counterpoint Research, in comments to Yahoo Finance.
Schneemann said Apple continues to outperform the broader smartphone market, including in China and Europe, where some advanced AI features have not launched.
The foldable iPhone itself also faces questions because of its high price and uncertain audience. Creative Strategies analyst Carolina Milanesi said Apple avoided clearly defining who the Duo is designed for during the launch.
“Apple doesn’t usually define who the buyer is, but in this case specifically, they really shied away from it,” Milanesi told Reuters.
The Duo is scheduled to become available Oct. 23, while Apple’s latest AI features begin rolling out with iOS 27. The launch marks an effort to make AI a larger part of Apple’s ecosystem while keeping privacy as a central selling point.
Impact of Apple’s AI strategy on its stocks
Apple shares rose 3.6% to $326.57 on Sept. 10, rebounding after a 0.28% decline during the Sept. 9 launch session. The gain came as the broader Nasdaq fell 0.7%, signaling a stronger investor response to Apple’s product strategy.
The rally followed the introduction of the $1,999 iPhone Duo, Apple’s first foldable phone, alongside the iPhone 18 Pro and Pro Max. Investors appeared to view the foldable device as a potential new source of revenue, while Apple’s AI push offered another path for future growth.
Still, analysts remain cautious about how quickly the new products will affect earnings. The Duo’s high price could limit its market to wealthier early adopters, while questions remain over whether Apple’s AI features can drive enough upgrades to materially change iPhone demand.
The initial stock reaction therefore gives Apple some breathing room, but sustained gains will likely depend on demand for the Duo, adoption of its AI features and the company’s ability to maintain margins as component costs rise.
