Apple says iPhone Duo supply gap won't close anytime soon

Apple’s iPhone Duo remains supply-constrained, COO Sabih Khan told analysts on the company’s fiscal fourth-quarter earnings call Monday, offering no timeline for relief. “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,” he said, “but at this time, it’s really hard to predict when supply and demand will be in balance.”

Customers who missed early preorders or didn’t queue at launch are now seeing ship times pushed into next year, and Verizon has been sending apologetic customers gift cards over the delay. Apple told the Financial Times in October that demand for the foldable device had been extraordinary, after it sold out online within hours of going on sale.

The delays are notable for a company known for an unusually efficient supply chain, but Apple isn’t alone: surging AI-industry demand for memory chips has pushed up component costs across the hardware industry and is pressuring device prices broadly. Khan said Apple has raised prices on several products this year, reluctantly, and that the company is deepening its partnership with titanium supplier Perryman to help source materials for the foldable phone.

CEO John Ternus said in his opening remarks that the response from reviewers and early customers has been strong, and that the company is working to get the device into customers’ hands as fast as possible.

Why it matters

A flagship device that’s selling out and still can’t scale production flags a broader industry pattern: AI-driven demand for memory and materials is now constraining hardware availability even at a company built around tight supply-chain execution.