Apple encounters serious problems with foldable iPhone

Apple's long-anticipated entry into the foldable smartphone market has run into trouble before the product ever reached a store shelf.

The company has experienced setbacks in the engineering test phase of its first foldable iPhone that could delay mass production and its planned shipment schedule, Nikkei Asia reported on April 6, citing multiple sources briefed on the matter.

Reuters, which also carried the story, said it could not independently verify the report. Apple did not respond to TheStreet's request for comment.

Apple shares fell about 2.85% on the news.

The problem with Apple's foldable iPhone

"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 source familiar with the matter told Nikkei Asia.

A second source added that the timing is urgent, MacDailyNews reported, citing Nikkei Asia. "April will mark a crucial stage of the engineering verification test, and this month till early May is extremely critical."

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A few component suppliers, though not all, have been notified that the component production schedule could be pushed back. Apple and its suppliers are working to resolve the problems, but delays to the shipment schedule would risk the company's marketing strategy for the long-awaited device, Nikkei reported.

In a worst-case scenario, the first foldable iPhone shipments could be delayed by months.

The device is currently in the production verification phase, the fourth of six steps Apple goes through before a product ships, according to Apple Insider.

What Apple planned and what's now at risk for its foldable iPhone

Nikkei had reported in January that Apple planned to launch its first foldable iPhone alongside two non-folding models featuring upgraded cameras and larger displays in the second half of 2026. That timeline is now in question.

Apple had targeted production of 7 to 8 million foldable units, which would represent less than 10% of its total planned iPhone production for 2026. The device was widely expected to cost as much as $2,400, according to PhoneArena.

The engineering challenges center on three areas that have proven difficult across the foldable smartphone industry: hinge mechanism reliability, display durability through repeated folding cycles, and the integration of components including batteries, cameras, and sensors into an unusually thin form factor.

Apple had reportedly been working on a dual-layer glass system to address the crease problem that has plagued every foldable device on the market.

What a delay would mean for the broader market

The stakes extend beyond Apple itself. International Data Corporation (IDC) had projected that an Apple foldable would help drive a 30% increase in global foldable smartphone shipments in 2026. The segment shipped 20.6 million units in 2025, up 10% year over year.

Apple's absence from the foldable category has been conspicuous. Samsung launched its first foldable in 2019 and has refined the lineup through multiple generations. Google and Huawei have also established strong positions in the segment.

Every month Apple's launch slips gives those rivals more time to lock in customers who might otherwise have waited for an iPhone version.

Key facts about the foldable iPhone situation:

• Nikkei Asia reported Apple engineering test phase setbacks on April 6, citing multiple sources.
• A worst-case scenario is that first shipments are delayed by months.
• Apple is targeting 7 to 8 million units, less than 10% of total 2026 iPhone production.
• The device's rumored starting price is as high as $2,400.
• Core challenges include hinge reliability, display durability, and component integration.
• Reuters could not independently verify the Nikkei report; Apple did not comment.

What comes next for the foldable

Analysts had previously flagged that the project could slip into 2027 if manufacturing or durability issues arose during testing. That scenario is now looking more plausible.

The next few weeks are particularly critical. Sources told Nikkei that April through early May will determine whether the current engineering timeline holds or needs to be pushed back significantly.

A delay is not yet confirmed. Apple has navigated supply chain setbacks before and still delivered products on schedule.

But the window for a clean second-half 2026 launch is narrowing, and with the iPhone 18 lineup also expected in the fall, the pressure on Apple's engineering teams is mounting on more than one front.

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This story was originally published April 7, 2026 at 12:42 PM.