Facepalm: Announced earlier this month after years of leaks, rumors, and speculation, the iPhone Duo is expected to go on sale next month. However, Foxconn, the contract manufacturer responsible for producing the device, is reportedly facing severe production constraints that could limit early output.
According to an unnamed insider quoted by Chinese media outlet Jiemian News, final assembly yields for the 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 improve yields to acceptable levels. Suppliers are also reportedly lobbying Apple to ease certain quality requirements to accelerate production and meet expected demand.
What makes the situation 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 suffering from 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 typically shipped over the total production cycle of an iPhone Pro or Pro Max. Another source reportedly confirmed that 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 indicated to Apple that 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. The increased 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, much lower than the rumored $3,000 - $3,500, and very similar to the $2,099 asking price for the Samsung Galaxy Z Fold 8 Ultra.