Apple has unveiled its first foldable smartphone, the iPhone Duo, and has moved to target China’s foldable phone market. Early reactions to product quality are positive, but its high price and dual eSIM-only design that excludes a physical SIM card have emerged as variables for success in China.

Hong Kong’s South China Morning Post reported on Sept. 10 that Apple unveiled the iPhone Duo on Sept. 9. The iPhone Duo is Apple’s thinnest and most expensive flagship model to date, highlighting a user experience in which screen transitions flow smoothly when folded and unfolded.

Interest among Chinese consumers also appeared quickly. On the morning of Sept. 10, a hashtag related to the iPhone Duo climbed to No. 2 on the trending search list on Chinese social media platform Weibo.

Early users focused in particular on software and user experience. Tech blogger Weibushi, who has 1.6 million Weibo followers, said the iPhone Duo carries over the existing iPhone experience naturally when switching between folded and unfolded states. He explained that it differs from simply porting iPadOS onto a foldable screen. Wang Weichen, a gaming and technology critic, also cited the user-friendly interface as a strength of the iPhone Duo.

Some point out that its communications setup could be an obstacle in China. The iPhone Duo removes the physical SIM tray and supports only dual eSIM. In mainland China, eSIM activation and transfer can require visiting offline stores and in-person identity checks, which could increase inconvenience for consumers. Wang said the lack of a physical SIM could "turn many buyers away."

The price is also a burden. Technology influencer Technology Xiaonai said the China price for the iPhone Duo base 256GB model is set at 15,999 yuan (about 3.21 million won). That is higher than the starting prices of Huawei’s Pura X Max and Xiaomi’s Xiaomi 18 Fold at 10,999 yuan (about 2.2 million won), and Samsung Electronics’ Galaxy Z Fold8 at 12,999 yuan (about 2.6 million won). It is, however, lower than the starting price of Huawei’s premium tri-fold Mate XT 2, unveiled on Sept. 8, at 19,999 yuan (about 4.01 million won).

The market has assessed Apple’s pricing policy as an aggressive bet. Liz Lee, an associate director at Counterpoint Research, said the pricing is a bold move at a time when memory costs are rising. She also noted that the global price gap versus Samsung Electronics’ main foldable phone is only about $100. She forecast that if supply is lower than expected, initial pent-up demand could instead grow.

Expectations for Apple’s foldable phone launch also affected component suppliers’ share prices. Shares of Lingyi iTech, which supplies precision hinge parts, display support plates and ultra-thin heat spreaders, rose more than 5 percent on the morning of Sept. 10 in both Hong Kong and Shenzhen markets.

Apple’s timing in entering China’s foldable phone market is also drawing attention. This week in China, Huawei and Xiaomi have unveiled new foldable phones in succession, intensifying competition. Huawei in particular holds about 79 percent of China’s foldable phone market, making it a formidable rival for Apple.

Francisco Jeronimo, vice president for client devices at IDC, said China is likely to be the most challenging market for the iPhone Duo. He added that Apple’s entry itself could be a strong catalyst offering Chinese consumers an alternative choice to existing products. He forecast that if Apple shows sufficient differentiation in design, durability and software usability, it could also have a chance to lead China’s foldable phone market by sales value.

Apple also added features aimed at niche demand. A Goldman Sachs research team led by Alan Chang highlighted that the iPhone Duo supports Apple Pencil. That contrasts with Samsung Electronics’ decision to remove S Pen support from its latest Galaxy Z Fold series.

The foldable phone market itself still makes up a small share of the overall smartphone market. Counterpoint Research said foldable phones remain at about 2 percent of the total smartphone market.

Some forecast that foldable phones could gain a different standing as Apple enters the market. Counterpoint Research vice president Neil Shah said Apple’s entry immediately made foldables a smartphone category in the spotlight. Counterpoint Research expects Apple to ship up to 6 million iPhone Duo units this year. Based on that, it forecast Apple will take about 25 percent of the global foldable phone market this year to rank second after Samsung Electronics at 38 percent, and surpass Huawei at 22 percent.

Ultimately, the iPhone Duo’s success or failure in China is expected to depend not only on product completeness but also on pricing and its eSIM-only design. The key will be how much Apple can offset these weaknesses amid the offensives of Huawei and Xiaomi, which dominate China’s foldable phone market.