Apple Shares Decline Amid Reports of Foldable iPhone Engineering Setbacks

Shares in Apple Inc fell nearly 4% on Tuesday following reports that the technology giant is facing significant engineering difficulties during early test production of its anticipated foldable iPhone, raising concerns that the device’s launch may be postponed until 2027.

According to Nikkei Asia, the foldable iPhone is currently undergoing engineering verification testing, a critical phase in which new designs are assessed prior to mass production. Sources with knowledge of the matter indicated that technical challenges have proved more substantial than initially anticipated, prompting Apple to inform component suppliers of potential delays to production schedules.

A source close to the development told Nikkei Asia that the complexity of the issues has exceeded expectations. The source noted that resolving these problems and implementing necessary adjustments will require additional time. The individual emphasised that the current situation poses a threat to the mass production timeline, with April representing a crucial stage of the engineering verification test. The period extending from this month through early May was described as extremely critical for the project’s progress.

The foldable iPhone had already been expected to launch after the iPhone 18 Pro and iPhone 18 Pro Max models, potentially following a staggered release strategy similar to that employed for the iPhone X. The newly emerged engineering complications increase the likelihood of further delays beyond the previously anticipated schedule.

Nikkei Asia’s report highlighted that among the considerations under review are hinge materials and manufacturing costs. Apple is reportedly evaluating two options: liquid metal, which may offer improved durability and reduced creasing, and a 3D-printed titanium alloy. A final decision on the hinge material is expected during the Production Validation Test phase, scheduled for July or early August.

The report also noted that ongoing pricing negotiations with assembly partners could have additional implications for the production timeline, adding another layer of uncertainty to the project’s schedule.