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The launch of the new iPhone Duo, Apple’s first foldable smartphone, offers an interesting starting point for examining a much broader question: how can a company defend its competitive advantage when the market changes, competition intensifies, and new technologies reshape consumer expectations?
The new iPhone Duo starts at $1,999 in the United States and £1,999 in the United Kingdom, immediately placing it at the very top end of the market. Apple is therefore entering a category that has already been developed by other manufacturers, without abandoning the premium positioning that has long characterized its business model.
This is precisely what makes the launch interesting not only from a technological perspective, but above all from a strategic and economic one.
A Changing Market
The smartphone market is no longer the same market in which each new generation of devices represented a radical transformation.
Competition has become far more complex. Alongside the major global players, manufacturers have grown capable of competing in the premium segment through technological innovation, design, cameras, artificial intelligence and new device formats.
The premium segment, however, continues to account for an increasingly significant share of the market. According to Counterpoint Research, in the first half of 2026, smartphones priced above $600 at the wholesale level accounted for 29% of global sales, up from 25% in 2025 and 20% in 2022. During the same period, Apple and Samsung together accounted for 84% of the premium segment.
The foldable smartphone market is also entering a new phase of development. Foldables still represent a relatively small share of the overall smartphone market, but forecasts point to significant growth and a gradual shift towards premium book-style models.
This is the context in which Apple’s decision should be viewed.
Being First Does Not Mean Being the Only One to Win
Apple was not the first company to develop a foldable smartphone.
When the iPhone Duo arrives, Samsung, Huawei and other manufacturers have already built experience and established a presence in the category. In the first quarter of 2026, Samsung and Huawei together accounted for more than 70% of global foldable smartphone shipments.
The interesting question, therefore, is not why Apple waited.
It is how the company can enter an established category without necessarily having to change its competitive identity.
The new iPhone Duo is not presented simply as another foldable device. Apple integrates it into its broader product philosophy: hardware, software, design, operating system and user experience are designed as components of a unified ecosystem. The device runs on iOS 27, incorporates Apple Intelligence and the A20 Pro chip, and introduces a range of features specifically developed for the foldable form factor. (apple.com)
In other words, Apple does not necessarily need to create a new market position for every new technology.
It can bring its existing positioning into emerging markets.
Price as a Strategic Lever
The $1,999 starting price does not simply reflect the cost of producing a technologically sophisticated device.
It also represents a positioning decision.
In highly competitive markets, price can serve different purposes: gaining market share, stimulating demand, competing on cost or, conversely, reinforcing perceptions of exclusivity and value.
Apple has historically operated primarily through the latter logic.
This does not mean that a higher price automatically guarantees greater profitability. Profitability depends on costs, volumes, product mix, operating structure and the company’s ability to sustain demand over time.
However, pricing can become a lever through which a company protects the economic value associated with its product.
The iPhone Duo is particularly interesting because it enters a segment where average prices are increasing. Counterpoint Research forecasts an 18% increase in the average selling price of foldable smartphones in 2026, driven by the growing presence of super-premium models.
Apple is therefore entering a growing category while maintaining a pricing strategy consistent with its broader positioning.
From Product to Ecosystem
Apple’s competitive advantage, however, cannot be examined through the price of the iPhone alone.
One of the central elements of Apple’s business model is its ability to connect products, software and services within a single ecosystem.
A customer may purchase an iPhone while simultaneously using iCloud, Apple Music, Apple TV, Apple Pay, AirPods, Apple Watch, Mac and other services or devices.
This changes the economic relationship between the company and its customers.
In 2025, Apple generated $109.2 billion in Services revenue, representing a 14% increase compared with the previous year. Total net sales reached $416.2 billion during the same fiscal year.
In its first fiscal quarter of 2026, Apple also reported that its installed base had surpassed 2.5 billion active devices, while Services revenue reached another record.
These figures help explain why Apple’s business cannot be analysed by looking at a single iPhone sale.
The device represents an entry point into a broader economic relationship.
When Strategy and Finance Speak the Same Language
This is precisely where competitive strategy and finance begin to speak the same language.
A decision that may initially appear to be purely product-related — such as introducing a new form factor, setting its price or integrating it into an ecosystem — can affect fundamental economic variables: customer value, revenue mix, margins, recurring revenues and the company’s ability to generate cash.
In 2025, for example, Apple’s Services generated $82.3 billion in gross margin on $109.2 billion in net sales. During the same year, the company’s total gross margin amounted to $195.2 billion.
These figures do not mean that the ecosystem is the only reason behind Apple’s financial performance, nor that every new product automatically generates higher profitability.
They do, however, demonstrate something important: positioning, pricing, innovation and ecosystem management can have a tangible impact on a company’s economic performance.
This is where strategy and finance intersect.
Defending Competitive Advantage in a Changing Market
The Apple case therefore illustrates a dynamic that extends well beyond the technology sector.
When a market evolves, a company does not necessarily need to reinvent itself completely in order to remain competitive.
Instead, it can seek to adapt its offering while preserving the elements that constitute its competitive advantage.
In Apple’s case, these include premium positioning, integration between hardware and software, a broad ecosystem of products and services, and a strong ability to monetize its installed base.
The new iPhone Duo therefore becomes more than just a new product.
It is an example of how a company can enter an existing category while seeking to transfer its established competitive model into a new market.
Innovation Is Not Only About Creating Something New
Innovation is often associated with the ability to be first.
From a strategic perspective, however, there is another form of innovation: the ability to transform a technology or a change in the market into a new source of value without losing an existing competitive advantage.
This is what makes the Apple case particularly interesting.
The point is not simply how many iPhone Duo units the company will sell.
The real question is how Apple will transform a new product category into value for customers, value for the company and, more broadly, a stronger competitive position.
Because in a mature and increasingly competitive market, growth does not necessarily mean selling more.
It can mean creating more value from every customer.
And it is precisely at the intersection of innovation, pricing, strategy and finance that a fundamental part of a company’s competitiveness is shaped.