Apple cannot say when inventory of its newly launched foldable smartphone will satisfy surging consumer demand as component shortages and soaring memory chip costs strain production ahead of the crucial holiday shopping season, company executives announced during an earnings call Monday.
The iPhone Duo, which went on sale Oct. 23 starting at $1,999, quickly sold out across online platforms, pushing expected delivery windows into late January 2027 for many customers. Apple Chief Operating Officer Sabih Khan told investors that the company is struggling to pinpoint an exact timeline for relief.
“The ramp is going well, and we’re working hard to get this revolutionary new product into the hands of our customers as quickly as possible. But at this time, it’s really hard to predict when supply and demand will be in balance,” Khan said.
AI boom drives component squeeze
The manufacturing bottlenecks stretch beyond the novel folding device. Khan explained that tight access to advanced semiconductor nodes used for Apple processors has hampered production across multiple product lines, including Macs and iPads. Most of the company’s cutting-edge processors are fabricated in Taiwan by TSMC, BBC News reported.
At the same time, hardware makers face severe competition for memory components. The rapid global expansion of artificial intelligence infrastructure, backed by massive data center investments from companies developing AI tools, has consumed vast portions of the available chip supply. Major memory manufacturers have redirected capacity toward AI data centers, leaving consumer device brands facing steep cost increases.
Apple Chief Executive John Ternus, who took the helm in September following Tim Cook’s departure, described the surge in memory component prices as “unprecedented.” Ternus indicated during the call that memory costs are projected to rise even higher through the December quarter, although recent selective price hikes across Apple’s lineup have helped soften the financial impact.
Hardware hurdles and record revenues
The iPhone Duo represents Apple’s first major design overhaul in roughly two decades, featuring a book-style hinge with a 5.4-inch outer display and a 7.6-inch interior folding screen. Despite the high price tag, the device vanished from digital storefronts in hours, leading wireless carriers like Verizon to distribute gift cards to appease frustrated customers facing shipping delays, according to TechCrunch.
The debut has not been entirely seamless. Some early adopters reported screens cracking along the interior crease. In an interview with Reuters, Ternus acknowledged that “a very small percentage” of units encountered the problem and confirmed the company is replacing damaged handsets.
To support manufacturing volume, Apple revealed it is expanding its ties with titanium supplier Perryman, TechCrunch reported. Despite component hurdles, Apple posted strong fiscal fourth-quarter results for the period ending Sept. 26, reporting total revenue of $114.5 billion and record iPhone sales of $57.58 billion, even before factoring in any Duo sales.
Whether Apple can accelerate assembly lines in time for the peak holiday rush remains uncertain, with Khan warning that component limitations are expected to persist well into next year.
