Apple's Foldable iPhone Duo Sells Out, Future Supply Uncertain

Apple's new foldable smartphone, the iPhone Duo, sold out in less than a week after its release. The company expressed satisfaction with the early sales performance of the device, priced at $1,999, but faces uncertainty regarding when new stock will be available.

John Ternus, who took over as Apple's CEO from Tim Cook in September, stated he was "thrilled" with the initial reaction to the iPhone Duo. However, some early buyers reported screen cracks.

Highlights

• Apple's new foldable iPhone Duo sold out completely shortly after its launch.
• Apple CEO John Ternus expressed excitement over the phone's early sales success.
• Sabhi Kahn, Apple's new chief operating officer, stated that the availability of new stock is uncertain.
• Some initial buyers reported screen cracks along the inner fold of their phones.
• Apple announced it achieved record global iPhone sales last year.

Details

Sabhi Kahn, Apple's new chief operating officer, told financial analysts that it is "really hard to predict" when supply and demand for the iPhone Duo will balance. Company executives did not mention any issues with the iPhone Duo during the call. However, last week, Apple announced it would replace any phones affected by an issue that caused a "small number" of new phones to crack along the inside fold.

On a positive note, Apple announced that it sold more iPhones globally last year than ever before. In the three months leading up to September, excluding iPhone Duo sales which began in late October, iPhone sales rose by 17% to $57 billion. Mac computer sales also grew by 27% in the same quarter, reaching $10.7 billion, another record for Apple. However, sales for both the iPad and Apple's wearable products, including headphones and Watch, fell by 10% and 7%, respectively.

Kahn noted that most Apple devices continue to experience supply constraints, partly due to difficulties in obtaining enough microprocessors with "advanced nodes." These components are essential computer chip technology that allows Apple's devices to operate more quickly, with most manufactured by TSMC, based in Taiwan. Kahn expects these supply constraints to continue into next year, particularly impacting iPads and Macs.

Why it matters

Apple's entry into the foldable phone market has generated significant interest in the mobile technology world, but the rapid sell-out and supply uncertainty highlight the company's challenges in production and logistics. Furthermore, reported screen cracking issues in some devices indicate that foldable technology still has areas for improvement. Global chip shortages and rising memory costs have led Apple to increase prices on virtually all of its hardware products by approximately 20%, which could affect the accessibility of technology products for consumers.