Apple Inc. (AAPL) has long faced criticism for not launching a new product category that would revitalize its growth, relying on gradual improvements to iPhones. This perception, released on August 30, is about to be tested with the company’s imminent entry into one of the most debated segments of the smartphone market: foldable cell phones.

With a major product event scheduled for early September, Apple is expected to unveil its first iPhone with a foldable screen, alongside its traditional premium models. For a company often seen as a follower in this niche, its participation represents an important milestone, leading investors to question the impact this will have on the shares.

The question is pertinent, given that Apple shares have gone through a turbulent period, affected by concerns about shrinking profit margins and a highly contested artificial intelligence strategy. With this perspective, the launch of an innovative product, coinciding with the arrival of a new CEO, constitutes a decisive moment. It remains to be seen whether the foldable iPhone will be a genuine innovation or just a big deal.

Multiple factors that could boost Apple

What makes Apple’s post-summer outlook so intriguing is that the foldable model is just one of several major developments lined up. It will launch alongside a new series of high-end iPhones, a long-awaited revamp of the Siri voice assistant and a leadership transition at the company’s top.

This set represents an unusual concentration of factors for a single period. Any one of these elements could influence market sentiment alone, but together, they offer bullish investors plenty of reason for hope. The expectation is that this wave of news, with the foldable in the spotlight, will be able to lift Apple from its recent stagnation and start a robust cycle of updates.

For a company whose finances largely depend on the sale of iPhones, any innovation that encourages its vast user base to purchase more expensive models is crucial. A completely new design, the first significant transformation of the iPhone’s form factor in years, has just the potential to achieve this goal.

Reasons the foldable iPhone will have limited impact

However, despite all the enthusiasm, there are valid reasons to keep expectations moderate. The main thing is the price. Rumor has it that the foldable iPhone will cost well over US$2,000, a price that would place it among the most expensive cell phones available on the market.

This raises a greater concern. Instead of attracting a large volume of new consumers to the brand, the foldable model may mainly appeal to loyal Apple fans who were already planning an upgrade. If this were the case, there would not be a significant expansion in sales, but rather a reorganization, bringing forward purchases that would occur anyway and contributing little to renewed overall growth.

There is also the question of timing and costs. The launch of the foldable iPhone comes just as rising memory chip prices continue to erode Apple’s margins. It’s understandable that the inclusion of cutting-edge foldable technology in a first-generation device will only intensify this cost pressure. In other words, the model can generate great repercussions, but without much benefit to profits.

Challenges with the company’s artificial intelligence strategy

Behind the hardware looms the issue that has most bothered investors recently: Apple’s widely scrutinized artificial intelligence strategy. While competitors forge ahead with their own systems, Apple has chosen to rely on technology from Alphabet Inc. (GOOGL), licensing the Gemini model to enhance Siri rather than just using its own solutions.

For skeptics, this is a worrying sign that Apple may have fallen behind in the most important technology battle of the era, without a clear plan for how to convert AI into profit. A dazzling new phone is a good thing, but if the clever software powering it is borrowed from a rival, the company’s much-touted advantage seems a little less assured.

This will, without a doubt, be the biggest challenge for the new CEO, John Ternus. Managing Apple’s AI strategy, keeping profit margins stable, and demonstrating that the foldable phone is more than a mere gimmick make for an unenviable initial to-do list.

The foldable iPhone as an impetus, but not a complete solution

All things considered, the foldable iPhone is a real cause for excitement, but it probably won’t be the explosive catalyst that more optimistic investors are hoping for. While it’s an exciting upgrade, its hefty price tag and the risk that it will merely redistribute existing demand mean that it is unlikely to transform the company’s near-term growth trajectory on its own.

The more realistic view is of a company with a lot at stake in the coming months, from the foldable model and broader lineup of iPhones to the AI ​​overhaul and leadership transition.

For investors, therefore, the foldable model should be seen as a promising piece of a much larger puzzle, rather than an isolated solution. Whether it proves to be a true turning point or a mere passing enthusiasm will depend on the execution, both of the foldable and all the other releases that accompany it.