Apple's stock edged higher on Friday after the company's first foldable smartphone, the iPhone Duo, sold out shortly after pre-orders opened. Shares were trading around $346.46 by mid-morning, up roughly 1.3% from Thursday's close, as investors weighed the initial demand for the device.
Social media users reported that estimated delivery dates for the iPhone Duo had slipped from October 23 to late January, indicating that early demand is outpacing supply. The strong initial response marks a key moment for Apple as it enters the foldable market, a segment where it has lagged behind rivals such as Samsung and Chinese manufacturers.
iPhone Duo: A New Chapter for Apple
The iPhone Duo features a 5.4-inch front display and a 7.6-inch foldable internal screen, designed to be roughly passport-sized. Apple has projected that foldable smartphones will account for about 10% of the market by 2029. While pre-order sell-outs are a positive signal, they do not guarantee long-term sales success, and the company will need to sustain demand beyond the initial launch.
The launch comes at a critical time for Apple, as it seeks to diversify its revenue streams beyond the traditional iPhone lineup. Recent reports of weaker-than-expected demand for the iPhone 18 Pro models had raised concerns about the company's premium smartphone outlook, making the foldable's reception particularly important for investors.
Apple Intelligence Clears China Regulatory Hurdle
In a separate development, Apple Chairman Tim Cook announced during a visit to Shanghai that Apple Intelligence has received regulatory clearance from Chinese authorities. The software is expected to begin rolling out to users in China as a test version later in October, with features including writing assistance, photo cleanup, and live translation.
To comply with local regulations, Apple has partnered with Chinese e-commerce giant Alibaba to use its Qwen AI models for users in mainland China. This move is seen as a crucial step for Apple to remain competitive in one of its most important markets.
Apple and Meta Collaborate on AI
Apple is also collaborating with Meta to optimize the latter's new Muse Spark Open AI model for Apple's high-end Mac computers. Meta CEO Mark Zuckerberg publicly thanked Apple's engineering team for helping the model run efficiently on M5 Ultra Mac systems. The partnership focuses on enabling Meta's large open-weight AI model to run locally on Apple's Mac Studio desktop systems.
This collaboration signals a potential shift in the relationship between the two tech giants, which have previously clashed over issues such as data privacy and App Store fees. The work, led by Apple's John Ternus and Meta's Zuckerberg, brings the companies together on AI infrastructure and model performance.
Analyst Views Mixed on Apple's Outlook
Wall Street analysts remain largely bullish on Apple's stock, but some caution persists. UBS maintained its Neutral rating with a $296 price target, citing iPhone availability data that shows shorter waiting times than a year earlier. The firm views the decline in wait times, along with a stable supply backdrop, as a potential concern for the iPhone maker.
KeyBanc also maintained an Underweight rating, reflecting a more cautious outlook. However, JP Morgan noted that the reported reductions in iPhone 18 Pro production orders are consistent with the adjustments Apple typically makes each year, suggesting the market may be overreacting.
As Apple navigates the foldable market and expands its AI capabilities, investors will be watching closely to see if the initial momentum can translate into sustained growth.
This article is for informational purposes only and does not constitute financial advice.
