Apple is working to restock its newly released foldable smartphone after initial batches sold out rapidly following its launch just over a week ago, according to the company’s new leadership.
Record Sales and High Demand for the iPhone Duo
John Ternus, who stepped into the role of Apple chief executive in September succeeding Tim Cook, stated on Monday that he was “thrilled” regarding the initial public response to the iPhone Duo. Priced at $1,999 in the United States and £1,999 in the United Kingdom, the premium device disappeared from shelves immediately upon release.
Despite the high demand, some early purchasers reported screen damage. Last week, Apple announced it would provide replacements for units affected by a defect causing a small number of devices to fracture along the interior fold. Company executives did not address these screen issues during a call with financial analysts on Monday to review the latest financial performance.
Sabhi Kahn, who serves as Apple’s new chief operating officer, reported during the financial call that the corporation remains uncertain when additional units of the Duo will reach consumers. Kahn explained that predicting when supply and demand will stabilize is currently very difficult.
Nevertheless, Apple announced strong overall performance, revealing that global iPhone sales over the past year reached an all-time high. During the three-month period ending September 26—which excluded sales of the iPhone Duo, launched late in October—iPhone revenue climbed 17% to reach $57bn.
Mac computer revenue also experienced growth during the quarter, rising 27% to total $10.7bn and setting another record for the firm. Across the entire fiscal year, total company sales advanced 15% to reach $479bn. In contrast, revenue for the iPad and wearable items, such as headphones and the Apple Watch, declined by 10% and 7% respectively.
Supply Constraints and Rising Costs
Kahn explained to analysts that the majority of Apple devices continue to experience supply limitations, partly stemming from challenges in acquiring sufficient microprocessors utilizing advanced nodes. These advanced computer chips enable faster device operation and are primarily produced for Apple by TSMC in Taiwan.
Kahn added that these manufacturing limitations are anticipated to persist into the following year, heavily affecting iPads and Macs. This situation has intensified due to what the technology firm describes as continuous, unexpected consumer demand.
Ternus pointed out that Apple continues to face unprecedented price surges for memory components required for data storage, including applications, photographs, and text messages. A significant portion of this memory infrastructure relies on data centers, which have experienced a massive surge in demand driven by the rising popularity of artificial intelligence chatbots and platforms created by companies like OpenAI and Anthropic.
As memory demand escalated, storage expenses increased significantly for technology firms like Apple. Earlier in the year, Tim Cook characterized this sudden surge in data center expenses as a “thousand year flood,” leading the company to increase hardware prices across nearly all of its product lines by approximately 20%.
Kahn stated that supply restrictions for affected product lines are expected to continue impacting manufacturing schedules through next year.
