Apple CEO cites supply limits

Apple CEO John Ternus told Reuters on Monday that the company cannot forecast when production of its new foldable phone will catch up with consumer demand. The device, known as the iPhone Duo, launched in October at a price of $1,999. It features a 5.4-inch outer display and a 7.6-inch inner screen.

Ternus explained that Apple is working to deliver units as quickly as possible, but he could not provide a specific timeline for when supply and demand would balance. He stated, "we’re not able to predict when supply and demand will be in balance." Preorders for the phone sold out rapidly, and some customers are expected to receive their devices in 2027. Apple also sold a limited quantity of units in stores at launch.

The supply issues coincide with rising costs in the memory market. During Apple’s Q4 2026 earnings call on Monday, Ternus described current memory pricing as unprecedented. He noted that the company expects even higher costs during the December quarter, although recent price increases across the product lineup will partly offset these expenses. These cost pressures contributed to higher starting prices for the iPhone 18 Pro and Pro Max models.

Ternus also addressed reports of cracked screens on the new device. He said a very small percentage of iPhone Duos were returned for this specific issue. Apple is replacing those units. The company has faced supply chain constraints and rising memory costs for several months.

Despite the lack of a standard iPhone 18 model, Apple reported record iPhone revenue of $57.58 billion for the fourth quarter. The earnings call took place on Monday, the same day Ternus spoke with Reuters about the foldable's availability.