Key points
- Apple CEO John Ternus stated in an interview with TIME that memory chip constraints constitute an absolute crisis for the company.
- Reports indicate Apple tested memory chips from a Chinese supplier in July, prompting warnings from US senators and the government regarding national security.
- The launch of the high-end iPhone Duo has slipped into 2027, partly due to these supply chain challenges and the device’s complex hinge mechanism.
Apple’s leadership has declared that memory chip shortages have reached crisis levels, complicating the rollout of its new foldable device. This statement follows reports that the company evaluated memory components from a Chinese manufacturer, drawing scrutiny from US lawmakers who cited national security concerns.
How it unfolded
- Apple chief executive John Ternus assumed his role on 1 September and soon addressed significant supply chain hurdles in a TIME interview.
- In July, the Financial Times reported that Apple began testing memory chips from a Chinese company, a move that triggered a letter from a bipartisan group of senators.
- The US government subsequently warned Apple against using Chinese memory chips, while Ternus insisted that all sourcing options must remain on the table to manage constraints.
Who is affected
The iPhone Duo, featured on the cover of TIME’s 2026 Best Inventions issue, is the primary product impacted by these delays. The device starts at $1,999 and utilizes a hinge with more than 100 tiny precision parts beneath a custom polymer surface. Deliveries for this model have already slipped into 2027, affecting the timeline for consumers awaiting the launch.
Ternus, who co-filed a patent for foldable devices in 2011, noted that early foldables from other companies felt cheap. He aims to differentiate Apple’s offering through build quality. The delay also impacts the broader narrative around Apple’s hardware strategy, as the company navigates complex geopolitical pressures while trying to maintain its premium brand image.
What happens next
Ternus emphasized that Apple does not aim to manufacture every single component in its products. He stated that the company focuses on making parts where it can stand out, rejecting the notion that relying on rivals for certain technologies is a retreat. This approach extends to software, where Apple’s new Siri in the US uses a model drawing on Google’s Gemini technology.
Greg Joswiak, Apple’s senior vice president of worldwide marketing, said the company builds AI for everyday people rather than Silicon Valley’s “lunatic fringe.” He added that Apple does not feel threatened by OpenAI’s hardware plans. Ternus also confirmed he has met with members of the Trump administration to ensure they are working through these issues together.
The background in plain language
Supply chain vulnerabilities arise when a company relies on a limited number of suppliers for critical components like memory chips. When geopolitical tensions rise, governments may restrict access to certain technologies, forcing companies to find alternatives quickly. For hardware makers, this means balancing performance, cost, and security while navigating complex international regulations. Teams usually monitor supplier diversity and maintain buffer stocks to mitigate such risks, ensuring that production lines remain active even when specific sources become unavailable due to political or logistical disruptions.
What to do and how to stay safe: Apple
- Review your supply chain contracts to identify single-source dependencies for critical components like memory or storage.
- Monitor official communications from government agencies regarding restricted technologies and trade sanctions that could impact your vendors.
- Establish clear criteria for evaluating alternative suppliers, focusing on security certifications and production capacity.
- Communicate proactively with customers about potential delays if your hardware relies on components subject to geopolitical scrutiny.
Step-by-step guide: Mobile Device Security for Small Business: Control Without Cost
General security guidance from the Circuit Observer newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
Why is Apple testing Chinese memory chips?
Apple is testing Chinese memory chips to address severe supply constraints, which CEO John Ternus has labeled a crisis, despite warnings from US officials.
Has the iPhone Duo release date changed?
Yes, deliveries for the iPhone Duo have slipped into 2027, according to TIME, due to supply chain issues and the device's complex manufacturing requirements.
Is Apple making all its own components?
No, CEO John Ternus stated that Apple does not aim to make every single part, focusing instead on components where it can differentiate itself.
