Apple says demand for its $1,999 iPhone Duo has outpaced supply since the foldable smartphone went on sale, while a small number of devices have reportedly developed cracks in the inner fold. Chief executive John Ternus said the company was “thrilled” by the early response, but Apple has not said when more units will be available as it continues to face shortages of advanced microprocessors and rising memory costs.
iPhone Duo sells out as Apple faces supply uncertainty
John Ternus, who succeeded Tim Cook as Apple’s chief executive in September, said Monday that he was “thrilled” by the initial response to the iPhone Duo.
The foldable smartphone costs £1,999 in the UK and reportedly sold out immediately after its release about a week ago. Some buyers have also reported cracked screens.
Demand remains high, but Apple’s new chief operating officer, Sabi Khan, said he could not predict when the company would have more iPhone Duo devices available.
“Right now it’s very difficult to predict when supply and demand will be in balance,” Khan said during a conference call with financial analysts discussing Apple’s latest financial results.
Apple executives did not discuss the reported display problems during the call. Last week, however, the company said that a “small number” of new phones had developed cracks in the inner fold and that it would replace all affected devices.
Apple reports record iPhone and Mac sales
Apple said Monday that it sold more iPhones worldwide last year than ever before. iPhone revenue rose 17% to $57 billion in the three months ending September 26. Those figures do not include the iPhone Duo, which launched at the end of October.
The company has said throughout the year that sales of iPhones, Mac computers and iPads were increasing, despite warnings that shortages of key components were affecting its ability to meet demand.
Mac revenue rose 27% during the quarter to $10.7 billion, setting a new record for Apple. Overall company sales increased 15% for the year to $479 billion.
However, iPad sales fell 10%, while revenue from wearable products, including Apple’s headphones and Watch, declined 7%.
Component shortages expected to continue
Khan said most Apple devices still face supply constraints, including difficulties obtaining enough microprocessors built using “advanced nodes.” These components are a form of computer-chip technology designed to help Apple devices operate faster, and most are manufactured for Apple by Taiwan-based TSMC.
Khan said the supply problems were expected to continue into next year, with iPads and Macs likely to be particularly affected. Apple has repeatedly said that “unanticipated demand” for its products has made the situation worse.
Ternus also said Apple was experiencing “unprecedented” cost increases for memory, which enables devices to store data such as apps, photos and text messages.
AI demand drives up data-storage costs
Much of the storage used by Apple is provided through data centers. Demand for data-center capacity has risen rapidly as artificial intelligence platforms and chatbots, including products developed by OpenAI and Anthropic, have become more widespread.
As demand for memory and storage has increased, so have the prices paid by technology companies such as Apple. Earlier this year, Cook described the sudden rise in Apple’s data-center costs as a “once-in-a-millennium flood.”
The higher costs led Apple to raise the prices of almost all its hardware products by about 20%.
Source: www.bbc.co.uk