Apple has warned that it cannot yet predict when its newly launched foldable iPhone Duo will be back in stock after the device sold out shortly after its release.
The smartphone, priced at nearly $2,000, became unavailable just over a week after its launch, with the company citing difficulties sourcing key components amid strong demand.
Apple executives acknowledged that supply constraints were making it difficult to match production with customer demand as the company approaches the busy Christmas shopping period.
Chief Executive John Ternus said the company was experiencing unprecedented increases in memory costs, driven partly by rising demand from the artificial intelligence industry, which has been investing heavily in data centres.
Ternus, who took over from Tim Cook in September, said he was pleased with the early reception of the foldable device. Chief Operating Officer Sabih Khan said Apple was working to get more units to customers as quickly as possible.
The Duo represents Apple’s first major iPhone design change in nearly two decades. However, some customers have reported problems with its screen, including cracks along the inner fold. Apple has said it will replace handsets affected by the issue, which it described as affecting a small number of devices.
The supply challenges come as Apple reported higher revenue for the three months ending September 26. Total sales rose to $114 billion, up from $102 billion in the corresponding period, while pre-tax profit increased to $36.1 billion from $32.8 billion.
iPhone revenue grew by 17 per cent to $57 billion, while Mac sales rose 27 per cent to a record $10.7 billion. However, iPad revenue declined by 10 per cent, while sales of wearable products, including watches and headphones, fell by seven per cent.
Khan said supply constraints affecting several Apple products were partly linked to difficulties securing advanced microprocessors. He warned that the situation could continue into next year, particularly affecting iPads and Macs.
Apple is also facing higher memory costs as demand for data-centre capacity grows alongside the expansion of AI platforms and services.
The company has raised prices across nearly all its hardware products by about 20 per cent, adding to concerns over the effect of rising component costs on its profit margins.
Despite the strong quarterly results, Apple’s shares fell by 1.8 per cent in after-hours trading.
