CNBC_ Apple is adding a U.S. supplier for the titanium used in its new foldable phone, the "iPhone Duo," and is expanding domestic production of camera components for the "iPhone 18 Pro," as part of its efforts to boost manufacturing within the United States.
The company said on Tuesday that it will allocate up to $100 million over the next three years to "Perryman Company" (Perryman Company), based in Houston, Pennsylvania, to produce titanium used in Apple products, including the foldable "iPhone Duo," which is priced at $1,999.
Since the beginning of Donald Trump's second presidential term, Apple has stepped up announcements of its efforts to increase investments within the United States, although the final assembly of most iPhones continues to take place abroad.
In August of last year, the company launched the U.S. Manufacturing Program and raised its domestic spending plan by $100 billion, bringing its total to $600 billion. Tim Cook, who served as Apple's CEO until last month, appeared at the White House to announce the program at a time when Trump was pressuring the company and other tech giants to boost production within the United States.
The latest announcement comes as Apple faces severe supply constraints for its first foldable phone, which begins rolling out in stores on Friday.
Online delivery wait times for certain "iPhone Duo" models extended to about 14 weeks on the first day pre-orders opened, according to Morgan Stanley, marking the longest wait time recorded by the bank for a new iPhone in a decade. Apple said on Friday that pre-orders were "exceptional by all accounts," but did not clarify whether it intends to increase production.
JPMorgan analysts estimate that Apple will ship between 8 million and 9 million units of the "iPhone Duo" this year, a level below previous expectations of about 10 million units due to supply constraints. The company did not clarify whether the agreement with Perryman will lead to an increase in production capacity in the near term.
Perryman will melt, forge, and roll Grade 5 titanium, with the metal containing at least 80% recycled material, according to Apple. Titanium is used in the external chassis of the "iPhone Duo" to provide durability.
In addition to the Perryman agreement, Apple announced on Tuesday an expansion of its partnership with "Qnity Electronics," based in Delaware, to manufacture advanced films used in the variable aperture camera system of the "iPhone 18 Pro."
This technology allows the phone's main camera to adjust the amount of light entering the lens according to shooting conditions, giving users greater control over lighting and depth of field.
Apple stated that U.S. companies produce about 100 components used in the "iPhone Duo" and "iPhone 18 Pro," distributed across more than 12 states.
Sabih Khan, Apple's Chief Operating Officer, said in a statement: "We are pleased to expand our cooperation with companies that produce advanced materials and components for the latest lineup of iPhones within America."
Apple also highlighted its investments with other partners under the U.S. Manufacturing Program, including Broadcom for domestic chip production, Corning for specialized glass used in iPhones and Apple Watch, and Amkor, which is establishing a semiconductor packaging and test facility in Peoria, Arizona.
Nevertheless, questions remain regarding Apple's ability to produce sufficient numbers of the "iPhone Duo" to meet demand, given the unusually long wait times before the phone arrives in stores.
