Apple has reportedly increased its production target for its highly anticipated first foldable iPhone to 10 million units for the year, signaling a major vote of confidence in the device’s market potential despite its premium positioning.

The updated target, first reported by Nikkei Asia on July 1, 2026, marks a significant upward revision from the company’s previous forecast of 7 to 8 million units.

1. Production and Launch Strategy

Apple is planning a massive product cycle for the second half of 2026, booking components for roughly 80 million new smartphones. This lineup includes the upcoming iPhone 18 Pro, iPhone 18 Pro Max, and the debut foldable model, which is widely expected to be branded as the iPhone Ultra.

  • Launch Timing: The foldable iPhone is expected to be unveiled alongside the iPhone 18 Pro series this September, though it may hit store shelves slightly later than the traditional Pro models.
  • Total Output: Apple’s total iPhone production for 2026 is projected to exceed 220 million units. By setting a 10-million-unit goal for the foldable variant, Apple is choosing to enter the market with a large-scale, ultra-premium rollout rather than a limited regional trial.

2. Design and Engineering Rumors

The device is expected to feature a “book-style” folding design, which opens up to provide a tablet-like experience.

  • Displays: Leaks point to a 7.8-inch inner OLED screen paired with a 5.5-inch cover display.
  • The Crease Solution: Apple has reportedly focused heavily on eliminating the central screen crease that plagues many competing foldables. The primary breakthrough is said to be a highly sophisticated, optically clear adhesive engineered to remain pliable and fill microscopic gaps, complemented by ultra-thin glass with variable thickness at the hinge.
  • Specifications: The device is rumored to be powered by an A20 chip and an Apple C2 modem, featuring 12 GB of RAM and storage options scaling up to 1 TB. Notably, it may utilize a Touch ID sensor integrated into the power button instead of Face ID.

3. The $2,500 Price Bet

Market analysts at the International Data Corporation (IDC) predict that the foldable iPhone will carry an average selling price (ASP) of around $2,500, with top-tier storage configurations potentially climbing toward $3,000.

This pricing strategy aims to establish a new “ultra-premium” tier that sits well above the current Pro Max models. Apple is betting that its loyal user base will absorb the high cost in exchange for a transformative form factor and an integrated software experience that leverages the expanded screen real estate.

4. Geopolitical and Supply Chain Headwinds

The push for 10 million units comes at a delicate time for the global tech supply chain. A persistent industry-wide memory chip shortage has already forced rivals like Xiaomi, Oppo, and Vivo to cut their annual production targets below 100 million units.

To secure the necessary components, Apple has reportedly:

  • Asked suppliers to prioritize and reserve components used in the iPhone 17 series for the upcoming iPhone 18 lineup.
  • Entered into delicate negotiations to source memory chips from Chinese manufacturers like ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC).

Because these Chinese firms face U.S. sanctions and appear on the Pentagon’s blacklist, Apple is actively lobbying the U.S. government to secure the necessary export licenses. This has placed the company at the center of intense U.S.-China tech policy debates, as Apple attempts to balance supply chain resilience with strict regulatory compliance.