iPhone Duo shortage may continue into 2027, Apple warns
What's the story
Apple has confirmed that the demand for its first foldable iPhone, the iPhone Duo, is still outpacing supply. The company addressed the issue during its fiscal fourth-quarter earnings call on Monday. Chief Operating Officer Sabih Khan acknowledged that while production of the iPhone Duo is ramping up, they are yet to determine when supply would meet demand.
Delivery delays
Supply shortage affects customers and retail partners
The supply shortage has already started affecting customers who missed the initial pre-order window or didn't visit an Apple Store on launch day. Now, they are facing delivery estimates that extend into 2027.
The situation is also impacting Apple's retail partners, with Verizon apologizing to customers for the long wait times and offering gift cards as compensation for the delays.
Market response
'Extraordinary' demand for iPhone duo
An October report by the Financial Times revealed that Apple had described the initial response to the iPhone Duo as "nothing short of extraordinary."
The device sold out on Apple's website within hours of becoming available, leading to delivery estimates being pushed into 2027.
This is a major departure from Apple's usual efficiency in managing production and distribution at scale.
Cost challenges
Rising memory chip costs impact Apple
Apple is also grappling with rising memory chip costs, driven by demand from the artificial intelligence (AI) industry.
This has put pressure on hardware manufacturers and increased component prices for consumer electronics.
Khan revealed during the earnings call that Apple has already raised prices across several products due to these cost pressures, a decision he described as something they had made reluctantly.
Supply strategy
Apple deepens partnership with titanium producer Perryman
To tackle the ongoing supply challenges, Apple is strengthening its supply chains for the iPhone Duo.
The company has announced plans to deepen its partnership with titanium producer Perryman, which supplies material for the foldable phone.
This move is aimed at ensuring a steady supply of critical manufacturing materials as production ramps up.