Apple (AAPL) Foldable iPhones Sold Out Quickly at $1,999 Price

Apple's new foldable iPhone, priced at $1,999, sold out within a week of its release. John Ternus, Apple's new chief executive, expressed satisfaction with the phone's early reception, while the company acknowledged some devices experienced screen cracks along the inside fold. Apple confirmed it will replace affected units.

Whereas demand remains high, Apple’s chief operating officer, Sabhi Kahn, stated it is currently difficult to predict when supply and demand will balance for the foldable iPhone. This comes amid supply constraints affecting various Apple products, including microprocessors sourced mainly from Taiwan’s TSMC.

In the quarter ending September 26, before the foldable iPhone's sales began, Apple's iPhone revenue rose 17% to $57 billion. Mac sales also grew by 27% to $10.7 billion, setting a record. Overall sales increased 15% to $479 billion. However, iPad and wearable device sales declined by 10% and 7%, respectively. Supply shortages and elevated memory costs, influenced by rising demand for data storage linked to artificial intelligence platforms, are expected to continue into next year.

This matters for investors because persistent supply constraints, production challenges for foldable iPhones, and increased component costs could impact Apple's future device availability and profit margins.