Apple Reports Record Quarter, Duo Shortage

Apple just posted blowout September-quarter results—$114.5 billion in revenue, up 12%, with iPhone sales surging 17% and Services hitting a record $31.57 billion. But the real kicker? The new iPhone Duo, Apple’s foldable, is so hot that you can’t buy one: pre-orders sold out in hours, January shipping dates are the norm, and Apple quietly raised its annual Duo target by 44%. For all the hype about supply chain worries and soft Pro demand, the story flipped—Apple’s ceiling this holiday isn’t demand, it’s how many Duos they can build.

But here’s the catch: ramping up Duo comes with growing pains and risk. Early adopters flagged inner display issues, and while Apple says returns are minimal, every defect threatens that glossy 47.9% margin—especially as U.S. manufacturing and recycled materials add cost. Meanwhile, Services is the cushion, with new features like a stickier App Store cancellation flow and a paid Siri AI tier rolling out. It’s a balancing act: more value and upsell, but pressure on user patience and regulatory nerves, particularly in Europe.

Featuring reporting from The Verge, GSMArena.com, and RuntimeWire.

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