Add StudioX as a preferred source on GoogleApple is striving to make its newly launched foldable smartphone available to more buyers after it rapidly sold out following its release, according to report details published by BBC Technology. The $1,999 US device, named the iPhone Duo, hit the market just over a week ago, but high demand and ongoing component shortages have left availability uncertain for consumers globally, including in Canada.
The release marks one of the first major debuts under Apple’s new chief executive, John Ternus, who took over the top leadership position from Tim Cook in September. While Ternus expressed enthusiasm for the initial customer reaction to the device, the rollout has met with early physical issues. Some early buyers reported that their screens cracked along the interior fold. Apple stated last week that it would replace any devices impacted by what it characterized as a “small number” of cracking incidents.
Supply Constraints and Strong Financials
During a call with financial analysts to discuss quarterly results, Apple Chief Operating Officer Sabhi Kahn acknowledged that it remains challenging to predict when supply and demand for the phone will reach balance. The company attributed broader supply constraints across its product lines to difficulties in acquiring enough microprocessors with advanced node computer chip technology, which are primarily manufactured by TSMC in Taiwan.
These microprocessor shortages are expected to continue into next year, affecting Mac computers and iPads alongside the new smartphone line. Nevertheless, Apple reported strong financial performance for the quarter ending September 26, which did not include sales from the late-October foldable phone release. Global iPhone sales rose 17 per cent to $57 billion US, while Mac sales jumped 27 per cent to $10.7 billion US, setting a new record for the company. Overall annual sales grew 15 per cent to $479 billion US. Conversely, sales dropped for iPads by 10 per cent and for wearables, such as Apple Watches and headphones, by 7 per cent.
Artificial Intelligence Boom Drives Price Increases
Hardware production faces further friction from steep cost increases for memory storage components needed for apps, photos, and media. Ternus highlighted unprecedented price hikes in data memory, driven by soaring demand from artificial intelligence platforms and chatbots created by companies like OpenAI and Anthropic.
The massive surge in data centre utilization by AI companies has constrained memory capacity and driven up expenses for hardware manufacturers. Former chief executive Tim Cook previously described the sudden escalation in data centre costs as a “thousand year flood.” In response to these mounting expenditures, Apple has raised prices across virtually all of its hardware items by approximately 20 per cent, impacting buyers in Canada and international markets.
Source: BBC Technology
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