Apple iPhone Duo has attracted overwhelming demand since its launch, selling out within just over a week. Apple's new chief executive, John Ternus, expressed excitement about the initial response, saying the company was working to make the premium foldable smartphone available to more customers. Priced at £1,999 in the UK, the device has quickly become one of Apple's most talked-about products.

Apple Struggles to Meet iPhone Duo Demand

Despite the strong launch, Apple is facing challenges in balancing supply with customer demand. New chief operating officer Sabih Khan told financial analysts that predicting when availability would return to normal remained difficult. The company has not provided a confirmed date for additional stock. Although executives did not discuss product defects during the financial results call, Apple recently acknowledged that a small number of devices had developed cracks along the inner folding screen. The company said affected customers would receive replacement devices.

iPhone and Mac Sales Reach Record Levels

Apple also reported impressive financial performance for the quarter ending September 26. iPhone revenue increased by 17% to $57 billion, while Mac sales climbed 27% to $10.7 billion, marking another record. The company said it had sold more iPhones worldwide over the past year than ever before. Overall annual revenue increased by 15% to $479 billion, highlighting continued demand for Apple's products despite production challenges.

Chip Shortages and Rising Costs Create Pressure

However, not every product category experienced growth. iPad sales declined by 10%, while revenue from wearable devices, including Apple Watch and headphones, fell by 7%. Khan explained that supply constraints, particularly involving advanced microprocessors, were affecting several products. Many of these chips are manufactured by Taiwan-based TSMC. Apple expects the challenges to continue into next year, especially for Macs and iPads.

AI Boom Adds to Apple's Manufacturing Costs

Rising memory prices have created another challenge for Apple. Increasing demand for data centre capacity, driven partly by the popularity of artificial intelligence platforms such as OpenAI and Anthropic, has pushed up memory-related costs across the technology industry. Ternus described the cost increases as unprecedented. Despite these pressures, investment analyst Sunil Krishnan viewed Apple's latest financial results positively, highlighting the strength of its iPhone business and profit margins. Apple's next major challenge will be meeting growing customer demand while managing rising production costs.

The company has also faced pressure from rising manufacturing expenses and higher memory prices, contributing to price increases across its hardware range. Apple previously described the sudden rise in data centre-related costs as an exceptional challenge. Even with these difficulties, its strong iPhone and Mac performances suggest that demand for its premium devices remains resilient. The key question now is whether Apple can expand production quickly enough to satisfy customers without putting further pressure on its profit margins.