Apple has encountered setbacks in the engineering test phase of its first foldable iPhone, Nikkei Asia reported on Monday.

According to Nikkei sources, the iPhone maker has faced “more issues than expected” with the foldable iPhone and may have a delayed release. Engineering issues reportedly appeared during the early test production phase.

It comes as Apple was allegedly prioritising the foldable iPhone and other premium models over others on account of constrained supplies of essential components, including memory chips. Additional delays could be a significant blow to Apple and cause them to rethink its strategic plans.

“The current situation could put the mass production timeline at risk,” one of the sources said. “April will mark a crucial stage of the engineering verification test, and this month, until early May, is extremely critical.”

Component suppliers have apparently been notified about the delays and Apple is currently looking for a solution.

A foldable iPhone has been rumoured since 2017, after company competitors like Samsung released its first one several years ago. According to the sources, Apple was vying for a foldable iPhone release this year alongside the iPhone 18 – however, with delays, this could extend into 2027 and beyond.

“Apple and the supply chain are working under a pressured timeline and the current solutions are not enough to completely solve the engineering challenge … more time is needed,” Nikkei’s source explained.

The foldable model could be a critical product for Apple to boost interest in the iPhone moving forward – although strong demand continues currently, according to Reuters last week. Apple is reportedly planning to produce seven to eight million of the devices initially, Nikkei said, although the tech giant hasn’t officially announced it yet.

The news comes after Apple has been slow out of the design room to innovate in areas like AI. Its challenges have also been heavily publicised, including its delayed upgrades to Siri and the rollback of its AI-generated news summaries.

It also abandoned decade-long plans to enter the electric vehicle (EV) market, codenamed Project Titan, after billions of dollars of investment.

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