Apple Expands iPhone Line-up and Foldable Production Amid Global Component Shortages

·         Apple plans to launch at least five new iPhone models between the second half of 2026 and the first half of 2027.

·         The company has increased its foldable iPhone production target to about 10 million units for 2026, up from an earlier estimate of 7–8 million units.

·         Ahead of launching its first-ever foldable iPhone, Apple has already secured components for approximately 80 million smartphones scheduled for release in the second half of 2026.

·         Apple's total smartphone production for 2026 is expected to exceed 220 million units.

·         Despite an industry-wide shortage of memory chips driven by AI-related demand, Apple has maintained a stronger supply position due to its scale and purchasing power.

·         Chinese smartphone makers such as Xiaomi, Oppo, and Vivo have reportedly reduced their annual production targets to below 100 million units because of component shortages.

·         Suppliers indicate that Apple's stronger bargaining power enables it to secure memory chips more effectively than its competitors.

·         Apple is reportedly considering spring iPhone launches to capitalize on supply advantages and expand its market share.

·         The global memory chip shortage, fuelled by demand from AI data centres, has significantly increased component costs across the consumer electronics industry.

·         Apple is reportedly in discussions with Chinese memory chip manufacturers ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC) to source memory for devices sold in China.

·         Both Chinese firms are included on a U.S. Pentagon list of companies alleged to support China's military, although Apple has not confirmed the reported negotiations.

·         Apple aims to diversify its supplier base to reduce supply-chain risks amid ongoing memory shortages.

·         According to reports, Apple plans to launch at least two additional iPhone models in the first half of 2027, including the standard iPhone 18 and a new iPhone Air.

·         The expanded product roadmap follows recent price increases for MacBook and iPad models, driven by rising memory and storage costs.

·         Apple has not officially commented on the reported production plans or supplier negotiations.

 

[ABS News Service/02.07.2026]

Apple plans to launch at least five new iPhone models between the second half of this year and the first half of 2027, while increasing production plans for foldable devices, as it looks to vie for a greater slice of the market amid an industrywide component supply shortage, Nikkei Asia reported Thursday (02.07.2026).

The U.S. tech giant has instructed suppliers to prepare to produce about 10 million foldable iPhones this year, up from an earlier forecast of 7 million to 8 million units, the report said, citing people familiar with the matter.

Ahead of launching its first-ever foldable device, Apple has already secured components for about 80 million smartphones spread across new models for the second half of 2026.

Apple’s total smartphone production for 2026 is expected to exceed 220 million units, the report said. Its scale and purchasing power in sourcing memory and components remain significantly stronger than most of its peers, even as shortages driven by AI-related demand ripple through the industry.

This has allowed Apple to navigate supply shortages better than Chinese rivals such as Xiaomi, Oppo, and Vivo, which have each slashed their annual production targets to below 100 million units.

“Compared with Apple’s bargaining power, the Chinese smartphone makers are in a weak spot in terms of getting more supplies of memory chips or increasing the prices,” an executive at a supplier for both Apple and Xiaomi said. “It gives Apple a good motivation to launch the iPhones in spring and take more of their share.”

Apple’s efforts to secure components come as a global memory shortage driven by demand from artificial intelligence data centers pushes up costs across the industry.

Bloomberg reported Thursday that Apple is in talks to source memory chips for devices sold in China from Chinese manufacturers ChangXin Memory Technologies and Yangtze Memory Technologies, both of which are included on a Pentagon list of companies alleged to support Beijing’s military. Apple has not confirmed the discussions, and Bloomberg reported that negotiations remain ongoing.

Apple is reportedly seeking to broaden its supplier base as memory shortages strain production across the consumer electronics sector.

Apple plans to introduce at least two new iPhones in the first half of 2027, including the standard iPhone 18 and a new iPhone Air, according to Nikkei Asia.

The aggressive product roadmap comes after Apple implemented price hikes for its MacBook and iPad lineups last week as memory and storage costs surged.

Apple did not immediately respond to CNBC’s request for comment.