Apple is working to make its new foldable iPhone Duo available to more consumers after the $1,999 smartphone sold out shortly after its release, according to the new head of Apple, John Ternus. Ternus expressed enthusiasm for the early reception of the iPhone Duo.
The foldable phone, which costs £1,999 in the UK, immediately sold out. Some early purchasers have reported issues with the screen cracking along the inside fold. Apple has stated it will replace affected devices, acknowledging that a small number experienced this problem.
Despite these early challenges, Apple executives indicated during a call discussing financial results that predicting when supply and demand for the device will balance is difficult. The company did not elaborate on any issues with the iPhone Duo during the call.
Apple reported strong overall iPhone sales, with a 17% increase to $57 billion in the three months leading up to September 26, a period that predates the iPhone Duo's availability. For the full year, iPhone sales have surged, despite Apple's previous warnings about component shortages affecting the availability of iPhones, Mac computers, and iPads.
Mac computer sales also saw a record increase of 27% to $10.7 billion in the same quarter. Overall company sales grew by 15% for the year, reaching $479 billion. However, sales for iPads and wearable products, including the Apple Watch, declined by 10% and 7%, respectively.
Executives cited ongoing supply constraints, particularly for microprocessors with advanced nodes, as a primary factor impacting most Apple devices. These components are crucial for device performance, and many are manufactured by TSMC in Taiwan. These supply constraints are expected to persist into the next year, affecting iPads and Macs particularly, compounded by what the company describes as "unexpected demand."
Apple is also experiencing unprecedented cost increases for memory storage, driven in part by the booming demand for data center space fueled by the popularity of AI chatbots and platforms. This surge in demand for memory has led to increased storage prices for tech companies like Apple, prompting the company to raise prices on nearly all its hardware products by approximately 20%.