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Apple may face delays in the development of its first foldable iPhone due to engineering challenges encountered during early testing, according to a report by Nikkei Asia.

Sources familiar with the matter said issues identified during the engineering test phase could push back mass production and initial shipments by several months in a worst-case scenario.

The report indicated that the company is addressing more technical challenges than initially anticipated, requiring additional time for adjustments and refinement.

However, a separate report by Bloomberg suggested that Apple is still aiming to unveil the foldable device in September, alongside its expected iPhone 18 Pro and Pro Max models. The timeline remains subject to change as production has not yet fully ramped up.

Apple has not officially confirmed the reports.

Shares of the company fell during trading following the news, declining as much as 5.1 per cent before recovering slightly to close down 2.7 per cent.

Earlier reports indicated that Apple is planning a major product launch in the second half of 2026, including its first foldable iPhone and other upgraded models featuring improved cameras and larger displays.