Apple Is Launching Its First iPhone Under New CEO John Ternus on Sept. 9. Could AI Features and a Foldable iPhone Be in the Cards?

Apple (NASDAQ:AAPL) has been a transformative tech company, completely disrupting the smartphone market by introducing touchscreen controls, internet service, and easy access to texting, music, and games. But dramatic innovations have been far less common in its more recent iPhone models, leading some of the shine to come off Apple.

Is that about to change? Apple has scheduled an iPhone launch event for Sept. 9, marking the first such event under the leadership of John Ternus, who is taking over from Tim Cook as CEO on Sept. 1.

Ternus' first launch event could be huge -- and include a product that would be Apple's biggest phone change since it rolled out its iPhone X and 3D facial recognition.

Apple incoming CEO John Ternus. Image source: Apple.

The folding iPhone may finally be here

The Sept. 9 event is widely expected to focus on the iPhone 18 family of products, including the iPhone 18 Pro and iPhone 18 Pro Max. That will likely also include the new 2-nanometer A20 Pro chip, which is expected to run cooler and longer, and a C2 chip that would provide better battery efficiency, enhanced privacy, and improved performance in congested data networks.

But if you're looking for a bigger physical change, you'll likely be more interested in the company's upcoming iPhone Fold (or possibly called iPhone Ultra), which will be Apple's first folding smartphone. Several other companies, including Motorola, Samsung, and Alphabet, market phones designed to fold like a book. The result is a product with a tablet-like display but compact enough to fit in a pocket or purse.

Apple's entrant is expected to have two screens -- one that is 5.3 inches and used as a typical smartphone, and an internal 7.8-inch screen that can be unfolded.

But the price could be steep. Published reports indicate that the foldable phone would be priced at $2,000 or more.

Will there be changes in AI products?

Apple has been working on Apple Intelligence and updates to its AI assistant Siri, announcing earlier this year that it was rolling out Siri AI as a next-generation version. Apple has called it a "profoundly more intelligent, knowledgeable, and capable Siri" and says it will be able to answer questions about something on a user's screen and get real-time information from websites and apps.

Apple's AI strategy is different from other major tech companies -- rather than investing in cloud infrastructure and computing capacity, Apple is focused on embedding AI applications and intelligence on its operating systems and devices through third-party technology. The idea is to protect user data and focus on the user experience rather than spending billions on compute.

That strategy has paid off so far this year -- Apple stock is up more than 15% on the year, making it the second-best performing stock in the Magnificent Seven grouping, behind only Nvidia.

Apple's newest products will integrate with Apple Intelligence, and the company is also expected to unveil upgraded smart home products this year that are compatible with its latest AI offerings.

Earnings for the fiscal third quarter (ending June 27) included revenue of $109.4 billion, up 16% from a year ago. Net income was $29.79 billion, up from $23.43 billion a year ago, and earnings per share of $2.02 were an improvement from $1.57 per share.

Apple's folding phone, when unveiled, won't be the first one on the market, but it will be a markedly different product than Apple consumers are used to. And considering Apple's reputation of having a very loyal customer base -- some estimates put the brand retention rate at close to 90% -- then the folding phone could make John Ternus first year a big one for Apple and Apple stock.

Patrick Sanders has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Apple, and Nvidia. The Motley Fool has a disclosure policy.