Apple Foldable iPhone Daily Output at Just Hundreds, Pressuring 8 Million to 10 Million Target

TradingKey - According to Nikkei Asia, mass production progress for Apple's (AAPL) first foldable iPhone remains relatively slow.

People familiar with the matter revealed that as of late August, average daily production of the model was only a few hundred units, well below the level required for large-scale commercial shipments. Apple and its supply chain partners are accelerating capacity expansion, but if the subsequent ramp-up speed still falls short of expectations, the foldable iPhone may face supply tightness in the initial stages of launch.

Sources said that Apple has very strict quality standards for this new form-factor product, adding an extra round of trial production and validation before entering formal production in August, which affected the tempo of mass production. Compared with conventional models, foldable smartphones face more manufacturing challenges in areas such as screen flatness and hinge durability, and Apple aims to further boost product yields before formally scaling up production.

The market previously expected Apple to produce about 8 million to 10 million foldable iPhones this year, hoping to leverage this new form factor to stimulate upgrade demand.

However, industry insiders pointed out that to achieve this goal, factories would normally need to produce tens of thousands of units per day, whereas the current daily output of a few hundred units clearly presents a significant gap. If Apple fails to quickly ramp up capacity over the next few months, final shipments could fall below original plans, and consumer wait times may also be extended.

For Apple, the foldable iPhone is not only a new product, but also an important initiative to drive growth in its smartphone business. Against the backdrop of pressure on global smartphone market growth, Apple hopes to raise its average selling price through premium new products and further extend its advantage in the high-end market.

The latest forecast from IDC shows that the average selling price of the first foldable iPhone could reach approximately $2,550, reinforcing previous market expectations that its price might exceed $2,000. However, this figure does not represent an official retail price, as the actual average selling price will also be affected by configurations such as storage capacity, and consumers purchasing higher-storage variants could further drive up the average selling price.

Meanwhile, the global electronics industry continues to face supply chain pressure driven by AI infrastructure investment. Ongoing data center construction is driving up demand for memory and other key components, creating additional challenges for smartphone makers' procurement and production. Although Apple possesses certain supply chain advantages thanks to its scale and bargaining power, the high manufacturing complexity of the foldable iPhone itself may still serve as a major constraint on scaling up shipments initially.