Apple is gearing up for its annual fall product launch, poised to introduce two significant milestones: the company’s inaugural foldable smartphone and the first showcase under new CEO John Ternus, who succeeded Tim Cook on September 1.

Scheduled for September 9 at 1 p.m. ET, the event, titled “Surprise and Shine,” will take place at Apple’s headquarters in Cupertino, California. This annual gathering allows the tech titan to unveil its latest devices just prior to their market release, typically occurring within days of the event.

This year’s presentation is particularly crucial for Apple, as it faces a decline in iPhone sales amidst a saturated market, with approximately 158 million iPhones currently owned by U.S. consumers, representing more than half of the adult population. Encouraging users to upgrade to more expensive models may prove challenging this year, especially as many families grapple with rising costs of essential goods, such as fuel and groceries.

Additionally, Apple must demonstrate progress in artificial intelligence initiatives, as the company is perceived as lagging behind competitors like Alphabet. Melissa Otto, head of research at S&P Global Visible Alpha, remarked to CBS News that there is a growing concern about Apple’s lack of engagement in the current AI boom. “The market has been disappointed by Apple’s slow participation in the AI excitement, leaving us to question their next steps under John Ternus,” Otto explained.

The upcoming event represents a vital opportunity for Apple to distinguish itself, particularly with the introduction of its foldable phone. “What advantages does their foldable phone offer? What motivates consumers to invest in it?” Otto emphasized.

While Apple has not yet provided comments on the event, analysts anticipate the announcement of the new iPhone 18, which is expected to feature upgraded Siri functionalities, in addition to updates for AirPods and the Apple Watch, according to Otto.

The highlight of the event is expected to be the launch of Apple’s first foldable smartphone, potentially named the iPhone Ultra, as reported by MacRumors. Dan Ives, a partner and analyst at Yorkville Ives & Co., expressed confidence that the foldable model could become a major success for Apple, stating, “This is an opportune moment for Ternus to usher in a new chapter of hardware innovation.” He noted that the timing is ideal to target Apple’s extensive existing customer base.

Although foldable smartphones have yet to gain widespread acceptance in the U.S., they have found popularity in Asian markets, where companies like Huawei and Samsung have long offered these devices. These phones typically feature larger screens, making them appealing to users who enjoy streaming content on their mobile devices, according to Otto.

Moreover, foldable phones are projected to be the only segment in the smartphone market anticipated to experience growth by 2026, according to IDC. They predict that Apple’s entry into this category could lead to a 13% increase in foldable device sales this year, totaling approximately 22.9 million units.

In contrast, the broader smartphone market faces considerable challenges, with IDC forecasting a 16.7% drop in total smartphone shipments this year. This anticipated decline is attributed to rising prices stemming from memory chip shortages, which have led some budget-conscious consumers to delay upgrading their devices.

While Apple has yet to disclose pricing details for its new smartphones, analysts predict that the foldable model will carry a higher price point than conventional iPhones, potentially around $2,000, as reported by Bloomberg News. In comparison, the current flagship iPhone, the Pro Max 17, starts at approximately $1,200.

Investors will closely monitor Ternus’ initial performance as CEO, as analysts indicate that his leadership will be scrutinized. During Cook’s 15-year tenure, Apple saw its revenue quadruple to over $416 billion annually, and its market valuation soared to more than $4.7 trillion, positioning it as one of the most valuable public companies globally.