iPhone Duo Reportedly Facing Production Problems Ahead of Launch

The iPhone Duo, Apple's first foldable smartphone, is reportedly encountering production challenges prior to its planned October release. Early production output is anticipated to be constrained, with final assembly yields for the foldable device only slightly above 60% as of September 17. According to a source close to Foxconn's supply chain, it may take Foxconn up to a year to achieve a mature yield under Apple's stringent quality standards.

Foxconn is continuously modifying equipment, assembly processes, and production settings to scale up production of the iPhone Duo. Suppliers are uncertain if Apple will relax quality requirements to expedite manufacturing. Issues extend beyond final assembly, as Samsung Display's foldable OLED panels and hinge components have faced low yields, delayed deliveries, and design changes.

These delays limit the assembler's time to optimize production. Apple tested Liquid Metal for certain hinge parts before reconsidering before mass production. Apple aims to stock around six million to eight million units of the iPhone Duo by 2026, significantly fewer than typical shipments of 20 million to 30 million units for a standard iPhone Pro or Pro Max model.

A separate retailer reported Apple's sales guidance exceeding five million units. A contract manufacturer has requested Apple consider prioritizing yield over output, as increasing production speed could result in more defective units and higher scrap costs. Apple introduced the iPhone Duo on September 9, with pre-orders starting October 16 and availability following on October 23. The device will begin at $1,999 in the United States.