According to Caixin News on December 16 (Editor: Xiaoxiang), after years of tedious changes in device appearances, Apple seems to finally plan a big move in the next two years…

According to sources familiar with Apple's plans, the company plans to launch an iPhone that is about 8 millimeters thinner than the current model starting next year. This model will be priced lower than the Pro model and will use a simplified camera system to reduce costs.

The sources indicated that the company also plans to release two foldable devices, aiming for a 2026 launch:

One larger device can be used as a laptop, with its screen expanded to nearly the size of some desktop monitors—up to 19 inches.

The smaller model will have a display size larger than the iPhone 16 Pro Max, designed for use as a foldable iPhone.

It is reported that the designs for these two foldable devices have been in development for many years, but some key components are not yet ready. The main challenges include improving hinges and display protection layers. Analyst Jeff Pu from HAITONG INT'L stated that current foldable phones in the market are not light or energy-efficient enough to meet Apple's standards, which is why Apple has been slow to enter this field.

According to sources familiar with Apple devices, Apple has attempted various designs, such as placing the display on the outside when the device is folded, but it is now more inclined towards an inward-folding design.

Is Apple seeking change?

Although Apple's initial goal was to launch a larger device to gauge market reaction, it now appears that the foldable iPhone is likely to debut sooner.

According to the above-mentioned individuals, Company Executives at Apple are striving to release this product by 2026, but the company may need another year to address technical challenges. As for ultra-thin phones, Apple intends to offer another option for those consumers who prefer a stylish appearance and do not mind sacrificing certain features of the Pro models.

Apple is currently eager to find new ways to accelerate growth. The Smart Phone business still accounts for about half of Apple's total revenue, but iPhone sales are currently in a slump, with revenue growth of less than 1% for fiscal year 2024. The last significant sales growth can be traced back to 2021 when carriers offered subsidies for iPhone purchases to support their burgeoning 5G network infrastructure.

Ming-Chi Kuo, a well-known Analyst and one of the first to predict the arrival of new devices in the market at Tianfeng International Securities, stated that Apple's Company Executives have been pushing for the new design to come to fruition sooner. 'I believe that things will ultimately proceed according to their plan.'

Although these updates are not considered groundbreaking breakthroughs—many of Apple's competitors have already been producing foldable devices—they still represent significant changes in appearance and functionality for Apple after many years. In recent years, the updates to Apple's main product matrix have been relatively minor, mostly focusing on chips and cameras, and these updates are increasingly insufficient to encourage users to upgrade their devices at the same pace as in previous years.

Cliff Maldonado, Chief Analyst at BayStreet Research, which studies the Smart Phone market, stated that the last major redesign of the iPhone was with the launch of the iPhone X in 2017.

For the recently released iPhone 16 series, Apple has focused its marketing efforts on Apple Intelligence, a new AI system applicable to newer iPhone models, but the Hardware upgrade remains minimal. Apple Intelligence was not available at the launch of the iPhone 16 in September, but was later opened to users in the USA in October. The next set of features, including integration with OpenAI's ChatGPT, was launched in last Wednesday's system update.

It seems that Apple is seeking to drive user upgrades through Hardware innovation, said Maldonado. The iPhone 16 may be the last Apple phone lacking in aesthetics.

Historically, designs of CNI Next-Generation Hardware have been a major driving force behind Apple's sales growth. Ten years ago, Apple launched the entirely new-sized iPhone 6 Plus, triggering a wave of growth for the company at that time.

Apple is also looking for new products outside of the iPhone to achieve growth. It is reported that Apple is planning subsequent products for Vision Pro, but specific development directions have not yet been determined. People familiar with the product say that one plan is to support Vision Pro with the iPhone, which could potentially reduce the cost of the device and lighten its relatively heavy weight. However, these individuals indicated that early tests show that relying solely on the iPhone chip may lack the processing power required to support certain applications.