Apple stock has fallen after the tech giant encountered setbacks in the engineering test phase of its first-ever iPhone, which could delay production and shipments.
People familiar with the matter told Nikkei Asia that the engineering issues could delay the shipment by a few months.
Some component suppliers have been notified that the component production schedule for the foldable iPhone may be pushed back.
"It's true that more issues than expected have emerged during the early test production phase, and additional time will be needed to resolve them and make necessary adjustments. ... The current situation could put the mass production timeline at risk," one of the people familiar with the matter said.
"April will mark a crucial stage of the engineering verification test, and this month till early May is extremely critical.”
The foldable iPhones were initially slated to be released alongside the iPhone 18 in September. The tech giant planned to produce around seven million to eight million foldable iPhones.
Foldable iPhones will account for less than 10% of Apple’s planned production.
iPhones are a key money maker for Apple, driving over half of the company’s US$143.8 billion reported revenue for the first quarter of fiscal 2026.
Apple’s biggest rival, Samsung, released its first foldable phone in 2019.
Research firm IDC forecasts that foldable smartphone shipments will grow by around 30% in 2026, driven by Apple's anticipated entry into the market.
Global foldable smartphone shipments reached around 20.6 million in 2025, marking a 10% growth from 2024.
According to Nikkei, the memory chip crunch, which has made it hard to meet growing iPhone demand, is not playing a role in the foldable delay.
At the time of writing, Apple (NASDAQ: AAPL) stock fell 2.07% to $253.50 but rebounded 1.85% in after-market trading to $258.13.
