Apple Inc (NASDAQ:AAPL, XETRA:APC) shares fell almost 4% on Tuesday after Nikkei Asia reported that Apple is encountering more engineering challenges than anticipated during the early test production phase of its foldable iPhone, potentially delaying the device’s launch into 2027.
The foldable iPhone is currently undergoing engineering verification testing, a critical stage that evaluates new designs before mass production. Sources cited by Nikkei Asia said the technical issues are more complex than expected, prompting Apple to notify component suppliers that production schedules could 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,” a source familiar with the matter told Nikkei Asia.
“The current situation could put the mass production timeline at risk. April will mark a crucial stage of the engineering verification test, and this month till early May is extremely critical.”
The foldable iPhone was already projected to launch after the iPhone 18 Pro and iPhone 18 Pro Max, potentially following a staggered release similar to the iPhone X. The newly reported engineering setbacks raise the risk of further delays beyond that timeline.
Nikkei Asia reported that issues under consideration include hinge materials and manufacturing costs. The company is reportedly deciding between liquid metal, which may enhance durability and reduce creasing, and a 3D-printed titanium alloy, with a final choice expected during the Production Validation Test phase in July or early August. Ongoing pricing negotiations with assembly partners could also influence the production schedule.