Apple Cites ‘Unprecedented’ Memory Pricing as iPhone Duo Demand Outstrips Supply

Apple is navigating a turbulent period of surging component costs and extraordinary demand, according to comments made by executive John Ternus. As the tech giant grapples with severe supply chain bottlenecks for its newly launched foldable device and ongoing price pressures across its hardware ecosystem, leadership remains unable to forecast when supply and demand will finally find equilibrium.

During a recent interview with Reuters, Ternus addressed the intense market interest surrounding the iPhone Duo, Apple’s first-ever foldable device. Launched just last month at a starting price of $1,999, the device features a 5.4-inch outer display and a sprawling 7.6-inch inner screen. Preorders for the innovative handset vanished almost immediately upon release, with wait times for subsequent shipments extending well into 2027. In an effort to manage the immediate rush, Apple made a strictly limited number of iPhone Duo units available for in-store purchases on launch day, though those allocations were depleted almost instantly.

When asked about a timeline for when these acute supply constraints might finally lift, Ternus indicated that the company is pushing its manufacturing partners to full capacity. Apple is working diligently to get the device into the hands of as many customers as quickly as possible. However, Ternus acknowledged that at this current juncture, the company is simply not in a position to predict when supply and demand will be in balance.

The launch of the foldable device has not been entirely smooth sailing beyond the sheer difficulty of keeping shelves stocked. Ternus also used the interview to address emerging reports regarding cracked inner screens on a subset of devices. Seeking to reassure consumers and manage the discourse surrounding the hardware, Ternus stated that only a "very small percentage" of iPhone Duos have been returned to Apple for this specific issue. He confirmed that the company is actively addressing the hardware concerns by replacing the affected units under warranty or standard return policies.

Beneath the excitement of the company’s first foldable device lies a broader, systemic challenge affecting Apple’s entire product catalog. For months, the company has contended with mounting supply chain constraints and steeply rising memory costs. These compounding pressures have driven widespread price increases across Apple’s hardware lineup, affecting everything from mainstream models to professional-tier devices. Higher starting prices for the iPhone 18 Pro and Pro Max models, alongside adjustments across other product lines, reflect a shifting financial landscape for consumer electronics components.

The severity of the situation was underscored during Apple’s Q4 2026 earnings call, where Ternus pulled back the curtain on the macroeconomic factors influencing manufacturing overhead. "What we’re seeing with memory pricing right now is unprecedented," Ternus told analysts and investors. He added that the Cupertino-based company anticipates even higher memory costs during the crucial upcoming December quarter. According to Ternus, the financial impact of these soaring component expenses is only "partly offset" by the recent price hikes implemented across the company’s product families.

Despite the headwinds posed by component shortages, soaring memory prices, and constrained manufacturing volumes for its flagship foldable, Apple continues to demonstrate extraordinary financial resilience. Notably operating without a standard iPhone 18 model in its traditional lineup, the company still managed to post record-breaking revenue for its smartphone division during the fourth quarter, pulling in a staggering $57.58 billion in iPhone sales alone. As Apple moves deeper into the holiday shopping season, the company remains locked in a high-stakes balancing act between maximizing production for its high-demand devices and absorbing the immense costs of a rapidly changing global memory market.