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Apple ramps up production plans as foldable iPhone looms
Apple has reportedly informed suppliers to prepare for roughly 10% higher iPhone orders in 2026 as the company positions the much-discussed iPhone Fold to lead a large upgrade cycle. According to supply-chain reporting, the Cupertino firm expects the foldable model to act as a halo product that not only draws attention to a new category but also lifts demand across the broader iPhone lineup, including the upcoming iPhone 18 series.
The iPhone 17 family continues to sell strongly and has broken records in China, but Apple appears to be forecasting an even more ambitious year ahead. Multiple industry sources indicate Apple is briefing component vendors and exploring alternate manufacturing routes to accelerate the iPhone Fold's introduction and to manage capacity for a projected increase in shipments.
Targets, projections and the math behind them
Reportedly, Apple is aiming to sell more than 240 million iPhones in 2026, with about 95 million units attributed to the iPhone 18 range. For context, initial 2025 projections for the iPhone 17 range were around 85 million units, and the total for all iPhones in 2025 was estimated near 220 million. Suppliers caution that Apple frequently provides conservative-high forecasts to hedge against component shortages or early production-quality issues when introducing a new hardware category.
"Sometimes Apple gives a much higher projection just in case to account for some challenges in electronics component supplies or possible production quality issues when building a new category of products," an industry source told reporters. Other suppliers still expect a modest baseline increase — roughly 5% year-over-year — even if the most optimistic scenarios do not materialize.
Manufacturing strategy: pilot in Taiwan, scale in India
One notable shift in Apple’s approach is the reported plan to set up a "mini pilot line" in Taiwan dedicated to the foldable iPhone. The purpose of this pilot facility would be to iterate on assembly tooling and quality control processes before transferring the finalized production flow to larger factories in India for mass production. Advantages of this two-step strategy include:
- Faster refinement of assembly processes in a specialist ecosystem;
- Reduced risk when scaling to high-volume factories; and
- Greater flexibility to qualify local suppliers and tooling.
Several sources mention that Apple is scouting land in northern Taiwan for the pilot, while also recruiting new tool suppliers from Taiwan to address longstanding equipment import constraints in India. The pilot line would likely require around 1,000 workers — a number that presents staffing challenges given local labor shortages in some Taiwanese cities.
Market context and potential impact
A successful iPhone Fold launch could trigger a ripple effect across the smartphone market. Foldables from competitors have shown that innovative form factors can stimulate replacement cycles and premium device demand. If Apple’s foldable delivers the expected performance, durability and software experience, it could persuade both existing iPhone users and Android customers to upgrade or switch.
However, risks remain. Introducing a new device class brings higher initial development costs, supply-chain complexity and quality-control hurdles. Regulatory, logistical and geopolitical factors — from cross-border equipment movement to local supplier readiness — also influence the timeline and throughput for mass production.
What to watch next
Key indicators to monitor in the coming months include Apple’s supplier briefings, tooling contracts in Taiwan, factory readiness in India, and early yield reports from pilot assemblies. If those elements fall into place, 2026 could be the year Apple broadens the iPhone form factor landscape and accelerates a wider upgrade cycle.
In short, Apple’s reported preparations reflect both ambition and caution: the company is betting the iPhone Fold will attract significant interest, but it is also running contingency plans to manage production complexity while attempting to preserve smooth supply for the rest of the iPhone portfolio.
Source: appleinsider
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