Apple's newly launched foldable iPhone, the Duo, has sold out rapidly following its release in late October, leaving the company unable to commit to a timeline for restocking. According to BBC News, John Ternus, who assumed the role of chief executive in September after Tim Cook's departure, expressed enthusiasm about the early market response to the $1,999 device during a financial results call on Monday. However, Sabhi Kahn, Apple's chief operating officer, acknowledged that the company cannot predict when supply will align with demand.
"At this time, it's really hard to predict when supply and demand will be in balance,"Kahn stated during discussions with financial analysts. The uncertainty extends well into 2027, as The Daily Star reported that Apple's online store displayed delivery estimates as late as January 25, 2027, after preorders opened on October 16 ahead of the October 23 launch date.
Ternus characterized the Duo as
"the most transformational iPhone since the original,"underscoring the company's confidence in the device's significance. Despite the enthusiastic reception, the foldable phone has encountered early quality concerns. A small number of units have experienced cracking along the inner fold of the display, prompting Apple to announce a replacement programme for affected devices. According to reporting from MacRumors, Ternus told Reuters that a
"very small percentage"of Duo units had been returned over display issues, suggesting the problem affects only a fraction of early sales.
How are broader iPhone sales performing?
Beyond the Duo's launch challenges, Apple's traditional iPhone business continues to demonstrate strength. During the three-month period ending September 26—before the Duo entered the market—iPhone sales climbed 17 percent to $57 billion, marking record performance for the product line. The company has maintained throughout the year that iPhone sales have accelerated despite warnings about component shortages affecting iPhones, Mac computers, and iPads.
This growth trajectory builds on momentum established earlier in 2026. Apple reported record iPhone demand in the spring, with sales reaching $111 billion in the first quarter and particularly strong performance in China, as Tim Cook prepared to transition leadership.
What is driving Apple's cost pressures?
While revenue growth remains robust, Apple faces mounting cost challenges that have forced the company to raise hardware prices by approximately 20 percent across its product range. Ternus highlighted that the company continues experiencing
"unprecedented"cost increases for memory storage, the capacity that allows devices to store applications, photos, and messages. Much of this memory infrastructure runs through data centres that have experienced surging demand as artificial intelligence chatbots and platforms developed by companies including OpenAI and Anthropic have gained widespread adoption.
Former chief executive Tim Cook had characterised the sudden spike in data centre costs earlier in the year as a
"thousand year flood,"reflecting the severity of the situation. As demand for memory storage has intensified, pricing for tech companies like Apple has escalated correspondingly, creating pressure on profit margins despite strong sales volumes.
What supply chain obstacles persist?
Beyond memory costs, Apple continues grappling with constraints on advanced semiconductor manufacturing. Kahn noted during the earnings call that most Apple devices remain affected by supply limitations driven partly by difficulty securing sufficient microprocessors with advanced nodes—the cutting-edge chip technology that enables faster device performance. Apple sources most of these components from TSMC, the Taiwan-based manufacturer.
The company expects these supply pressures to extend into 2027, with particular impact on iPad and Mac production. However, there are signs of gradual improvement. According to MacRumors, Apple indicated that constraints on advanced chip-manufacturing nodes are easing as more products transition to 2-nanometer technology. Kahn attributed ongoing shortages partly to what the company characterises as
"unexpected demand"for its products, a phrase Apple has repeated throughout the year as sales have exceeded internal projections.
How did other product categories perform?
While iPhones and Macs delivered strong results, other segments showed weakness. Mac sales expanded 27 percent during the quarter to $10.7 billion, establishing another record for the category. However, iPad sales declined 10 percent, and Apple's wearable products—including headphones and the Watch—fell 7 percent. Overall company revenue rose 15 percent for the year to $479 billion.
What do analysts make of Apple's financial position?
Sunil Krishnan, an analyst at Aviva Investors, characterised Apple's results as
"a reasonably solid set of results"with
"pretty good performance"from the iPhone division. While acknowledging concerns about profit margin guidance and memory chip costs, Krishnan noted that
"margins well north of 45% for a very well-established company, I think, are pretty impressive."This assessment reflects the company's ability to maintain strong profitability despite cost headwinds and competitive pressures.
What comes next for the iPhone Duo?
Apple has not disclosed a specific date for when Duo supply will normalise. According to Longbridge, Ternus stated that the iPhone Duo production ramp is progressing well, though supply remains constrained. With delivery estimates currently extending to late January 2027, customers seeking the foldable device face an extended wait. The company will need to significantly accelerate manufacturing to meet the apparent demand, which has exhausted initial inventory within weeks of the product's market entry.
