Apple Foldable iPhone Production Halted by Stringent Quality Control
Apple's stock fell about 2% on Friday as investors weighed reports that initial production of the company's long-awaited foldable iPhone remains limited, raising concerns about whether Apple can meet demand when the device launches.
According to a Nikkei Asia report, production of the foldable iPhone was running at only a few hundred units per day in late August. The slow initial output is primarily due to Apple's stringent quality-control requirements while the company and its suppliers work to increase production.
The production constraints come shortly before Apple's Sept. 9 launch event, where the company is expected to unveil its latest iPhone lineup. Industry executives cited by Nikkei Asia said tens of thousands of devices would normally need to be produced each day to meet Apple's planned production target of 8 million to 10 million foldable iPhones this year.
Apple has reportedly targeted production of 8 million to 10 million foldable iPhones this year. However, the company could fall short of that target if production does not accelerate. The new form factor could potentially create a new premium upgrade cycle for the iPhone, expand Apple's addressable market and provide an additional growth driver as the broader smartphone market faces pressure.