Investor Gary Black predicts Apple Inc.'s (NASDAQ:AAPL) newly launched foldable device will start a hardware purchasing cycle, but production limits may curb incremental earnings for possibly six months.
Market Impact and Demographics Apple unveiled its first foldable smartphone, the iPhone Duo, starting at $1,999 on Wednesday.
Black predicts the phone will "usher in a new iPhone upgrade cycle" and "substantially increase" Apple's average selling price.
A hardware purchasing cycle or an upgrade cycle refers to a period where a large number of consumers replace their old electronic devices with new ones at roughly the same time.
Black expects the device will become a "must-have product" for "20- and 30-somethings," noting that this demographic will seek the phone as a "status symbol" and to take and show pictures and videos.
