Apple’s first foldable iPhone, priced from AED 8,499 in the UAE, is set to become one of the company’s most expensive smartphones and test consumers’ willingness to pay more for an ultra-premium device.

Unveiled as the biggest iPhone redesign in a decade, the iPhone Duo will go on sale in the UAE on October 23, with pre-orders opening on October 16. The UAE will be among the first markets to receive the device.

The iPhone Duo will start at AED 8,499 in the UAE and rise to AED 13,599 for the highest-specification model, placing the foldable among the most expensive products in the smartphone market.

Josh Gilbert, senior market analyst for Asia-Pacific and the Middle East at investment platform eToro, said Apple’s main challenge would be converting interest in the new foldable design into widespread sales.

Referring to Apple chief executive John Ternus, he said: “The key challenge is whether consumers will be willing to pay this much for a new device on a broad scale. For the Duo to have a meaningful impact on Apple’s performance, it needs to sell in high volumes. Simply having it in the product portfolio will not be enough.”

The launch also marks the first major product unveiling under Ternus, who succeeded Tim Cook as Apple’s chief executive.

Apple shares fluctuated during the event but closed broadly unchanged. Gilbert described the market reaction as relatively positive, given that Apple’s stock had risen by about 40% over the previous 12 months.

He said investors had already priced much of the anticipation surrounding the foldable iPhone into Apple’s shares, making a broadly flat close a reasonable outcome under the circumstances.

The iPhone Duo will have a global starting price of $1,999, rising to $3,199 for the highest-specification model.

Gilbert said financing options and monthly instalment plans could ease the upfront cost for buyers, but Apple’s main test would be whether it could expand sales beyond its traditional loyal customer base.

The iPhone Duo is being launched as Apple seeks to sustain growth in its hardware business while contending with rising component costs.

Gilbert said pressure on Apple’s gross margins in the latest financial quarter and higher memory costs would be among the factors closely monitored by investors.

He added that the iPhone Duo would not be cheap to manufacture, as its two displays and tightly packed internal components would increase production costs. Rising memory prices also remain a challenge for Apple.

According to the analysis, Apple has raised the prices of its Pro and Pro Max models by $100, while the current iPhone 16, iPhone 17e, iPhone 17 and Air models are also $100 more expensive.

Gilbert said the price increases were relatively modest compared with the pressure from higher production costs, potentially raising concerns about Apple’s future profit margins.

Although the foldable iPhone hardware was the main focus of the event, the pace of Apple’s progress in artificial intelligence remains a key issue for investors.

The event largely highlighted Apple Intelligence and Siri features previously unveiled in June, while Ternus presented the iPhone as a personal intelligence hub.

Apple also introduced Siri Recaps for the Apple Watch, but Gilbert said the event lacked a major new breakthrough in artificial intelligence.

He said Apple’s strategy was increasingly focused on using devices that customers already own as gateways to the company’s AI services.

According to Gilbert, one of the most important questions is how effectively third-party applications will integrate with Siri, which could determine how useful Apple’s AI services are in everyday life.

The unveiling of the foldable iPhone could also provide the first clear indication of Apple’s priorities under Ternus, who has spent much of his career working on the company’s hardware development.

Gilbert said that while Tim Cook’s tenure was largely focused on expanding services, the Ternus era would probably place greater emphasis on hardware products and extending the reach of Apple devices.

However, investors are still waiting for a clearer move from Apple in artificial intelligence, particularly as its competitors advance more rapidly in the field.

For Apple, the iPhone Duo is more than simply a phone with a new design added to its product portfolio. Its high price in the UAE will test whether the company can translate demand for an ultra-premium smartphone into sufficient sales while managing the higher cost of producing a foldable device without seriously damaging profitability.