Apple says it's 'really hard' to predict when iPhone Duo supply will catch up to demand
Apple's chief operating officer said during Monday's earnings call that "it's really hard to predict when supply and demand will be in balance."
Apple disclosed on Monday that it remains uncertain when its upcoming iPhone Duo will align with consumer demand, as purchasers of preorders are facing lengthy wait times. The firm attributed this predicament to memory shortages driven by demand for artificial intelligence technology, which is simultaneously driving up production costs.
During Monday's earnings call, Apple's Chief Operating Officer Sabih Khan revealed that the company could not forecast when iPhone Duo supply would meet demand, stating, "We're thrilled with the initial response on the iPhone Duo. iPhone Duo is constrained as of today. The ramp is going well, and we're working hard to get this revolutionary new product into the hands of our customers as quickly as possible."
The foldable iPhone Duo hit stores on October 23, 2023, after a pre-order period beginning October 16, 2023. Online delivery estimates for the device were pushed to late January 2027 following the start of preorders. Khan also noted that supply constraints for iPhones, Macs, and iPads were primarily due to a shortage of advanced chipmaking technology used for producing Apple's processors.
In the September quarter, strong demand strained supplies of these products, but the most significant bottleneck was the availability of memory chips. Apple is competing with tech giants for these memory chips, as major manufacturers like Samsung, SK Hynix, and Micron shift production towards the expanding AI market, leading to tighter supplies and higher costs for device manufacturers.
This scarcity is already impacting Apple's bottom line. CFO Kevan Parekh stated during the earnings call that, excluding tariff refunds, Apple's gross margins would each decrease by approximately one percentage point sequentially, primarily due to rising memory costs. Despite these challenges, Apple reported $114.5 billion in revenue for the quarter, exceeding Wall Street's expectations, with iPhone sales contributing $57.58 billion.
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