Apple shares slip 2% as foldable iPhone output lags

Apple shares fell about 2% on Friday after reports that initial production of the company’s foldable iPhone was running at only a few hundred units per day in late August, putting the company’s 8–10 million unit target at risk.

The low output occurred during test and verification runs as Apple and its suppliers worked to scale manufacturing ahead of the Sept. 9 product event. Engineers added an extra trial run in August to confirm the device met Apple’s specifications; that verification delayed commercial production by several weeks and limited initial volumes.

A supply‑chain manager familiar with the situation described Apple as having very high quality requirements, which constrained how quickly assembly lines could ramp. Industry executives estimate that meeting the 8–10 million target would normally require tens of thousands of devices produced each day once full production begins.

Apple’s testing demands include more extreme durability checks, a greater number of folding cycles and tighter tolerances for screen flatness. Surface flatness and hinge performance are among the production details where engineers are seeking better yields, according to sources familiar with the manufacturing process.

The production constraints coincide with shortages of memory and other electronic components. Some industry forecasts project global smartphone shipments to decline about 16.7% this year and expect the memory shortage to push average selling prices higher by roughly 27.6%.

To manage constrained component supplies, Apple has prioritized its three most premium iPhone models and reallocated parts and marketing resources toward higher‑end devices. The standard iPhone lineup has been shifted to a later release window, according to people involved in planning.

Analysts expect the first Apple foldable to be positioned as a premium device, with price projections from certain firms starting above $2,000. The model is expected to include dual front and rear camera systems, an OLED inner display with an ultra‑thin glass cover, a larger battery and enhanced cooling and structural elements to support the folding mechanism.

Rival manufacturers such as Samsung and Huawei have been selling foldable phones for years and are preparing new designs ahead of Apple’s entry. The foldable iPhone represents Apple’s move into an existing segment of the smartphone market.

Apple’s Sept. 9 event will be the company’s first major product launch under CEO John Ternus, who took over on Sept. 1. Ternus, a longtime hardware executive, has described the upcoming launch as a major one.