Bottom line: After years of rumors and speculation, Apple's first foldable iPhone is expected to go on sale next month, but getting enough of them into customers' hands could prove the harder part. Foxconn, the contract manufacturer responsible for producing the device, is reportedly facing severe production constraints that could limit early output, raising the prospect of tight supply for what is now Apple's most expensive iPhone.
According to an insider quoted by Chinese outlet Jiemian News, final assembly yields for the iPhone Duo were only slightly above 60% as of September 17. It could take Foxconn another six months to a year to raise yields to more mature levels while maintaining Apple's exacting quality standards.
The insider added that Foxconn has been continuously adjusting equipment, assembly processes, and production settings as it tries to bring yields up to acceptable levels. Suppliers are also reportedly lobbying Apple to ease certain quality requirements to speed up production and meet expected demand.
What makes matters worse is that the problems extend well beyond Foxconn. According to the report, several suppliers are also experiencing production issues, with Samsung Display singled out as one of the worst affected. The company is reportedly struggling with low yields for its foldable OLED panels and hinges, largely due to last-minute design changes by Apple.
Another supply chain source claimed that Apple's total production target for the iPhone Duo in 2026 is between six and eight million units, much lower than the 20 to 30 million units an iPhone Pro or Pro Max typically ships over its full product cycle. A separate source reportedly said Apple's sales guidance for the iPhone Duo is in excess of five million units.
According to a separate report from MyDrivers, several suppliers have told Apple it might have to choose between yield and output, as the entire iPhone Duo manufacturing ecosystem is facing serious production issues. The report, however, did not reveal the identities of any of the suppliers urging Apple to lower its quality standards to meet output targets.
The sources explained that ramping up production under the current constraints might improve output, but at the cost of yield, with the number of defective units expected to skyrocket, especially if Apple is unwilling to compromise on quality. Higher output would therefore result in higher scrap costs, which may not be in Apple's best interest.
Apple unveiled the iPhone Duo earlier this month at its 'Surprise and Shine' event in Cupertino, California. The device starts at $1,999 for the base 256GB model, lower than the $2,500+ range some analysts had predicted, and similar to the $2,099 asking price of the Samsung Galaxy Z Fold 8 Ultra.
The iPhone Duo is reportedly facing production challenges with low yields and quality concerns
