$AAPL JUST OPENED A NEW $2,000 IPHONE ERA Apple just gave us a much better iPhone revenue setup than we were expecting where Pro pricing moved up ~9% and Pro Max ~8% which should help absorb higher memory costs while the absence of the iPhone 18, 18e and Air points to Apple splitting the upgrade cycle and pushing more near term demand toward higher priced Pro models while Apple priced the 18 Pro at $1,199 and Pro Max at $1,299. The biggest upside surprise for me was iPhone Duo. Apple entered foldables with a $1,999 device that opens to a 7.6 inch display roughly 50% larger than Pro Max while still fitting in your pocket. I was previously thinking Duo could be around 5% of iPhone revenue in FY27, but after seeing the product I think 10% is much more realistic. Even modest migration from Pro Max into Duo can have a measurable impact on both iPhone and total Apple revenue. The other big shift is Apple clearly building its hardware around personalized AI. The company framed iPhone as the “intelligent personal hub,” with Siri using personal context, AirPods extending that intelligence hands free and Apple Watch turning health data into personalized guidance. Apple is gradually turning the devices people already carry into the sensing layer for a much broader AI experience. Put it together and this was less about another annual hardware refresh and more about raising the value of the installed base. Higher pricing supports margins, the split cycle can improve mix, Duo creates an entirely new premium tier and AI gives users another reason to stay inside the ecosystem. That is why I think the Street may still be too low on Apple’s growth into 2027.