Apple has acknowledged ongoing supply shortages affecting its new iPhone Duo, with Chief Operating Officer Sabih Khan saying it remains difficult to predict when production will catch up with customer demand.
Speaking during the company’s fiscal fourth-quarter earnings call on Monday, Khan said production was progressing well but the device remained in short supply.
“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. But at this time, it’s really hard to predict when supply and demand will be in balance,” he said.
Customers who missed the initial pre-order window or did not purchase the device at launch are now facing delivery estimates extending into next year.
The delays have also prompted Verizon to apologise to customers and offer gift cards as compensation for postponed pre-orders.
Strong demand puts pressure on Apple’s supply chain
The shortages follow an exceptionally strong response to the iPhone Duo. According to an October report by the Financial Times, Apple described demand for the device as “nothing short of extraordinary” after it sold out on the company’s website within hours of becoming available.
The surge in demand pushed delivery dates into next year, highlighting the challenges Apple faces in scaling production of its new foldable device.
The delays are particularly notable given Apple’s reputation for managing an extensive and efficient global supply chain.
AI demand drives up memory chip costs
The supply constraints also come as technology companies face rising component costs, particularly for memory chips.
Growing demand for memory from the artificial intelligence industry has increased pressure on chip supplies and pushed up costs for hardware manufacturers.
During the earnings call, Khan acknowledged that Apple had raised prices on several products, saying the decisions were made “reluctantly”.
The discussion around rising memory costs and inventory levels was among the key issues raised by analysts during the call.
Apple deepens partnership with titanium supplier
Apple also indicated it was expanding its relationship with Perryman, a titanium producer supplying materials for the iPhone Duo.
The move comes as the company works to strengthen its supply chain and increase production to meet demand for its new foldable device.
Chief Executive Officer John Ternus said Apple had been encouraged by the early response from reviewers and customers.
“We’ve been thrilled with the early response from reviewers and customers, and we are working hard to get iPhone Duo into customers’ hands as quickly as we can,” Ternus said in his opening remarks.
