Apple's much-anticipated first foldable smartphone, the iPhone Duo, has launched to overwhelming demand, far exceeding the company's production capabilities. CEO John Ternus admitted that the device is selling faster than Apple can manufacture it, with no immediate end to the supply shortage in sight.
The iPhone Duo, which debuted on October 23 after a month-long preview period, has quickly become a hot commodity. Despite reporting impressive financial results for the fourth fiscal quarter of 2026, Apple is struggling to fulfill customer orders.
Unprecedented Demand for iPhone Duo
Speaking on November 2 following the Q4 2026 earnings announcement, Ternus told Reuters,
"Duo is constrained as of today. The ramp is going well, and we're 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."This candid admission highlights the extraordinary consumer interest in Apple's entry into the foldable phone market.
Apple's Q4 2026 performance saw significant growth, with revenue reaching $114.5 billion, up from $102.5 billion in the same quarter last year. The company posted a profit of $30.7 billion, an increase from $27.5 billion year-on-year. Gross margin also improved to 47.9% from 47.2%, driven by record-breaking total revenue, iPhone revenue, and earnings per share, alongside its highest-ever Services revenue.
Addressing Display Concerns
In addition to the supply challenges, Ternus also addressed reports of display issues affecting a small fraction of iPhone Duo units. He confirmed that affected models have been returned to Apple, and replacements have been offered to eligible customers. The company had previously acknowledged these inner-display problems and advised users to contact AppleCare for assistance.
As Apple works to scale up production and resolve any lingering issues, the iPhone Duo's immense popularity underscores a significant new chapter for the tech giant in the competitive smartphone landscape.