Apple to Unveil Foldable iPhone and Major AI-Powered Siri Update

Apple is expected to unveil its first foldable iPhone and a significantly revamped, AI-powered Siri at a product event on Wednesday, a pivotal moment for new CEO John Ternus as he seeks to demonstrate the company's prowess in both hardware innovation and artificial intelligence.

Wall Street is closely watching the event at Apple's Cupertino headquarters for signs that the tech giant can deliver breakthrough products and compete effectively in the generative AI race dominated by rivals.

Foldable iPhone Takes Center Stage

Analysts anticipate the launch of a new iPhone that folds open like a passport, positioning Apple to become a leader in the high-end foldable market. Despite a rumored price tag exceeding $2,500, the device is expected to see strong demand.

• Projected Revenue: Nabila Popal, senior research director at IDC, told Reuters she expects the phone to generate over $45 billion in revenue for Apple by the end of next year.
• Market Position: While competitors like Samsung and Google have offered foldables since 2019, analysts believe Apple's late entry is an advantage. "They’ve seen what has worked and what hasn’t worked with their competitors," said Anshel Sag, an analyst at Moor Insights & Strategy, suggesting Apple has solved key engineering challenges like hinge durability.

To drive focus toward its new premium device, Apple is expected to update its iPhone Pro and Pro Max models while delaying refreshes for its other iPhone lines until the spring, according to the report.

Siri's AI Overhaul

Ad

A successful revamp of the Siri virtual assistant, which the company has already announced, will be crucial for Ternus. The overhaul, which reportedly taps Google's AI technology, aims to bring Siri's capabilities in line with competitors like Google's Gemini.

Investors have so far been patient with Apple's slower start in generative AI, trusting in its massive and loyal customer base. The updated Siri represents Apple's primary effort to convince consumers its ecosystem is the best platform for AI applications.

Investor and Regulatory Scrutiny

The product launch serves as a major test for Ternus to prove he can maintain the momentum established by his predecessor, Tim Cook. The key challenge, analysts say, is convincing customers and developers that Apple can keep pace with the rapid improvements from rivals like OpenAI.

However, the AI-powered Siri faces significant regulatory hurdles. According to Gene Munster of Deepwater Asset Management, the update may not receive approval in China until 2028 and will not be available in Europe at launch due to an ongoing regulatory dispute. This could temper the global impact of one of the event's most anticipated announcements.