Apple is prioritizing production and shipment of its three highest-end iPhone models for 2026, while delaying the rollout of its standard model due to a change in the marketing strategy and supply-change constraints, according to a Nikkei Asia report.
The tech giant will focus on its first-ever foldable iPhone and two non-folding models with upgraded cameras and larger displays for a flagship launch in the second half of 2026. The standard iPhone 18, on the other hand is now scheduled for a launch in the first half of 2027.
According to the report this move aims to optimize resources and maximize revenue and profits from premium devices. This comes amid rising cost of memory chips and materials, and to minimize production risks tied to the more complex industrial techniques for Apple’s first foldable device, according to the report.
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“Supply chain smoothness is one of the key challenges for this year, and the marketing strategy change also played a part in the decision (to prioritize premium models),” an executive at an iPhone supplier with direct knowledge of the plan told Nikkei Asia.
According to Reuters, Apple on Thursday beat Wall Street estimates for quarterly revenue, driven by strong iPhone demand and a sharp rebound in China, with CEO Tim Cook telling Reuters that demand for the latest handsets was “staggering.”
Meanwhile, Apple reduced the pricing for its iPhone Air, in a rare move. This came amid a number of issues with the model, including battery life, price, features, and design realities.
READ: iPhone Air price falls as ‘ultra-slim’ model faces battery troubles and other challenges (
Apple also reported on Thursday that sales of the iPhone hit an all-time high in the final three months of last year, boosted by the new range of iPhone 17. Revenue rose by 16% compared to the same period last year to $144 billion — the strongest growth since 2021 — due to a jump in sales in China, Europe, the Americas, and Japan. However, sales in other parts of the company were a lot less positive. Wearables and accessories, which include things like the Apple Watch and AirPods, fell by roughly 3%, while the sales of Mac computers fell by just over 7%.
Apple also stated it plans to spend $16 billion in the coming fiscal year on further build-out of its business, including retail stores and infrastructure. According to a BBC report, this figure is conservative when compared to other companies like Microsoft, which spent more than $37 billion in capital expenditures in its most recent quarter alone, largely on AI projects.