Apple faces high memory costs and low supply for new foldable phone

Apple does not yet know when it will have enough iPhone Duo phones to meet buyer demand. During a recent interview, Apple CEO John Ternus stated that the company is working hard to deliver the device to as many buyers as quickly as possible. However, he noted that the company cannot predict when supply and demand will finally balance out.

Launch Details

Apple released its very first foldable phone last month with a price tag of $1,999. The device comes with a 5.4-inch outer display and a 7.6-inch inner screen. Preorders for the new phone sold out fast, and some deliveries are pushed back to arrive as late as 2027. The company also made a limited number of units available inside stores on launch day.

Quality Issues and Costs

When asked about reports of broken screens, Ternus replied that only a very small percentage of users returned their devices for this reason, and Apple is replacing them. Meanwhile, the company is dealing with rising memory costs and supply chain limits. Ternus called current memory prices unprecedented during an earnings call, adding that costs will likely go even higher in the December quarter. Despite these pressures, Apple still brought in record-breaking iPhone revenue of $57.58 billion in the fourth quarter.

Context

High memory prices and supply chain limits often force major tech companies to raise prices across their product lines to protect profit margins. Launching a brand new category of device like a foldable phone frequently creates early production bottlenecks when component supply cannot keep up with high initial consumer demand.