Apple CEO John Ternus said the company cannot predict when supply of its new foldable iPhone Duo will meet demand. He called memory pricing “unprecedented” and said Apple expects higher memory costs in its December quarter. Priced at $1,999, the device’s preorders quickly sold out, with some shipments expected to arrive in 2027.
Ternus made the remarks in an interview with Reuters and during Apple's Q4 2026 earnings call. He said the company is “working hard to get it to as many customers as quickly as possible, but at this point, we’re not able to predict when supply and demand will be in balance.” The company has faced supply chain constraints and rising memory costs for months, which pushed up the starting prices of the iPhone 18 Pro and Pro Max.
The iPhone Duo is Apple’s first foldable phone, featuring a 5.4-inch outer display and a 7.6-inch inner screen. Apple made a limited number available in stores at launch.
Ternus also addressed reports of cracked screens, saying “a very small percentage” of iPhone Duos had been returned for that reason and that Apple is replacing them. On memory costs, he said the company expects “even higher memory costs” in the December quarter, though these are “partly offset” by recent price increases. Even without a standard iPhone 18 model, Apple reported record iPhone revenue of $57.58 billion in the fourth quarter.
Analysis
Why This Matters
- Supply constraints for Apple's first foldable could delay access for many customers and test the company's ability to manage production for a new form factor.
- Rising memory costs are driving price increases across Apple's product lineup, affecting affordability for consumers and the company's pricing strategy.
- Despite high prices and supply issues, record iPhone revenue shows strong demand, suggesting customers are willing to pay premium prices for new features.
Background
Apple launched the iPhone Duo, its first foldable device, in October 2026. The company has been grappling with industry-wide supply chain pressures and escalating memory costs that have also led to price bumps on other models. Preorders sold out rapidly, and a limited number of units were available in stores at launch.
What to Watch
- Apple's December quarter earnings in early 2027, when the full impact of higher memory costs and price increases will be visible.
- Whether the company can resolve the screen crack issue and scale up production to meet demand.
- Future memory pricing trends and their ongoing effect on Apple's product costs and retail prices.
