Apple AAPL shares edged higher after the company’s first foldable smartphone, the iPhone Duo, sold out shortly after preorders opened on Friday.
At 11:05 AM EST, the stock was trading around $346.46, up approximately 1.3% from Thursday’s close, as investors assessed the initial response to Apple’s long-awaited entry into the foldable phone segment.
Users on social media reported that estimated delivery dates for the new device had shifted from October 23 to late January, suggesting that initial demand was running ahead of available supply.
Sentiments were also helped by other company-specific developments.
iPhone Duo marks Apple’s entry into foldables
Apple has entered the foldable smartphone market after lagging behind Samsung and Chinese manufacturers in the category.
The passport-sized iPhone Duo features a 5.4-inch front display and a 7.6-inch foldable internal screen. Apple expects foldable smartphones to account for roughly 10% of the market by 2029.
The initial response to the device could help the company establish a foothold in the segment, although preorder demand alone does not determine the product’s eventual sales performance.
The launch also comes as Apple seeks to diversify its growth drivers beyond its established iPhone lineup.
The reported weakness in demand for the iPhone 18 Pro models had raised concerns about the outlook for its premium smartphones, making the reception of the foldable device an important development for investors.
Apple Intelligence clears regulatory hurdle in China
In another development, Apple Chairman Tim Cook announced during a visit to Shanghai that Apple Intelligence had 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. Planned features include writing assistance, photo cleanup, and live translation.
To comply with local requirements, Apple has partnered with Chinese e-commerce company Alibaba to use its Qwen AI models for users in mainland China.
Apple and Meta collaborate
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 optimize the model to run on M5 Ultra Mac computers.
The collaboration focuses on enabling Meta’s large open-weight AI model to run locally on Apple’s high-end Mac Studio desktop systems.
The partnership signals a potential shift in the relationship between the companies, which have previously clashed over issues including data privacy and App Store fees.
Under Apple CEO John Ternus and Meta CEO Zuckerberg, the work brings the two technology companies together on AI infrastructure and model performance.
Analysts largely bullish but demand concerns weigh
Analysts remain bullish over Apple’s stock prospects, but there are some concerns as well.
UBS maintained its Neutral rating on Apple with a $296 price target, pointing to iPhone availability data showing shorter waiting times than a year earlier.
The firm viewed the decline in wait times, alongside a stable supply backdrop, as a concern for the iPhone maker.
KeyBanc also maintained an Underweight rating on the stock, reflecting a more cautious outlook.
JP Morgan, however, said the reported reductions in iPhone 18 Pro production orders were consistent with the adjustments Apple typically makes each year.
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