Apple's Foldable iPhone Hobbled by Supply Bottleneck

Apple's highly anticipated foldable iPhone is facing an unexpected supply problem. According to recent reports, production is currently limited to only a few hundred units per day due to strict quality-control standards set by Apple and its manufacturing partners.

The bottleneck could create scarcity around the device, which is expected to be priced above $2,000. This unusual setup may reinforce the foldable iPhone's premium image and generate strong early demand, but it will need manufacturing yields to improve quickly for the device to become a meaningful contributor to iPhone revenue.

Analyst Ming-Chi Kuo estimates second-half 2026 assembly shipments of roughly 7 million to 8 million units, including only 500,000 to 1 million units in the third quarter. He expects pricing around $2,300 to $2,500, positioning the device well above Apple's conventional Pro models.

The stakes are substantial because iPhone remains Apple's most important hardware business. A device near $2,500 could materially lift average selling prices if Apple eventually scales production, but prolonged supply constraints would cap unit volumes and delay that upside.