Apple has significantly increased its production targets for the first foldable iPhone, according to a report from Nikkei Asia. The company now expects to manufacture and sell around 10 million units of the device, which is expected to be branded as the iPhone Ultra. This figure represents a substantial increase from earlier estimates of 7 to 8 million units, indicating strong confidence in the product's market reception. The foldable iPhone is anticipated to carry a premium price tag, with an average selling price of $2,500 and top storage configurations potentially reaching $3,000.
The news comes as Apple prepares for a major product refresh in the second half of 2026. Alongside the foldable iPhone Ultra, the company is expected to introduce the iPhone 18 Pro and iPhone 18 Pro Max, with combined production orders for these three models totaling 80 million units in the second half of the year. According to the report, Apple has told suppliers to prepare components for up to 85 million new iPhones during that period, signaling an aggressive push to secure supply chain capacity amid ongoing component shortages.
Production Targets and Supply Chain Implications
The decision to raise the foldable iPhone production target to 10 million units is a bold move for Apple's entry into the foldable market. Previous rumors had suggested that Apple was taking a cautious approach, waiting for the technology to mature before committing to large volumes. However, this report indicates that Apple is now confident enough to order quantities that rival established foldable players like Samsung. The increase from 7-8 million to 10 million units represents a 25-43% jump, which requires significant adjustments across the supply chain.
Apple has reportedly asked suppliers to reserve common components and parts used in the iPhone 17 series for the upcoming iPhone 18 premium lineup. This strategic move ensures a steady flow of materials while also managing inventory risks. The report highlights that Apple is moving "aggressively to secure components amid the ongoing shortages," a reference to global semiconductor and display constraints that have affected the entire electronics industry. By locking in supply early, Apple aims to avoid the delays that plagued some competitors' foldable launches.
The total iPhone orders for 2026 are projected to reach 220 million units, according to the report. This figure includes the 80 million new models introduced in the second half, plus ongoing production of the iPhone 17 series and earlier models. Industry analysts at IDC have forecast Apple shipping close to 240 million iPhones in 2026, suggesting that the reported orders may be conservative. The discrepancy could be due to the fact that the 220 million figure only includes orders placed so far, with potential for additional orders later in the year.
Foldable iPhone Ultra: Features and Positioning
The foldable iPhone Ultra is expected to be Apple's most expensive smartphone ever, with pricing starting at $2,500 and top-tier storage options reaching $3,000. This positions the device firmly in the ultra-premium segment, competing directly with Samsung's Galaxy Z Fold series and other high-end foldables. The name "Ultra" suggests that Apple is creating a new tier within its iPhone lineup, distinct from the Pro and Pro Max models. This branding aligns with the company's strategy of offering increasingly differentiated products for different customer segments.
Little is known about the specific design and features of the foldable iPhone, but industry insiders expect Apple to adopt a book-style folding mechanism similar to the Galaxy Z Fold. The device is rumored to feature a large inner display when unfolded, possibly around 8 inches, and a cover display for one-handed use. Apple is likely to leverage its expertise in display technology, hinge design, and software optimization to deliver a seamless folding experience. The company has been filing patents related to foldable displays and hinge mechanisms for years, suggesting that the technology has been in development for a long time.
The high price point raises questions about demand. While some consumers are willing to pay a premium for cutting-edge technology, the foldable market has historically been niche. However, Apple's brand loyalty and ecosystem integration could help it overcome this barrier. The iPhone Ultra is expected to run a version of iOS optimized for foldables, taking advantage of the larger screen for multitasking, media consumption, and productivity. Features like Apple Pencil support, enhanced split-screen capabilities, and new gestures could set it apart from competitors.
iPhone 18 Pro and Pro Max: Mainstream Upgrades
Alongside the foldable iPhone Ultra, Apple will launch the iPhone 18 Pro and iPhone 18 Pro Max, with combined orders of 70 million units. These models will likely succeed the iPhone 17 Pro and Pro Max, introducing incremental improvements in performance, camera, and battery life. The report mentions that Apple has asked suppliers to reserve components used in the iPhone 17 series for the iPhone 18 premium series, suggesting a degree of component sharing to streamline production.
The iPhone 18 Pro and Pro Max are expected to feature the next-generation A18 chip, built on an advanced process node for improved efficiency and performance. Camera upgrades may include a periscope lens for enhanced optical zoom, which was introduced on the iPhone 17 Pro Max. Rumors also point to increased RAM, faster charging, and improvements to the display, possibly with a higher refresh rate or brighter panel. These models will serve as the primary upgrade choice for most users, while the foldable iPhone Ultra targets enthusiasts and early adopters.
Interestingly, the report indicates that Apple is not planning to replace the standard iPhone 17 with an iPhone 18 until spring 2027. This would extend the life of the iPhone 17 on the market from the typical 12-month run to around 18 months. Similarly, the iPhone Air, introduced in September 2025, is expected to receive an upgrade in spring 2026. This staggered refresh cycle suggests that Apple is shifting to a longer rhythm for its base models, allowing the Pro series and foldable to take center stage in the fall.
Market Impact and Industry Reactions
The news of Apple's increased foldable orders has already sent ripples through the supply chain. Suppliers of display panels, hinges, and flexible batteries are ramping up capacity to meet the demand. Analysts see this as a bullish signal for the foldable market, which has been growing steadily but still represents a small fraction of total smartphone sales. Apple's entry could accelerate adoption, forcing competitors to innovate and differentiate their own offerings.
However, some analysts caution that the high price of the iPhone Ultra could limit its appeal. The $2,500 price point is roughly double the cost of a standard iPhone Pro Max, which may be too much for many consumers. Additionally, foldable devices have historically faced durability concerns, including creases in the display and hinge failures. Apple will need to address these issues convincingly to justify the premium.
Overall, the report paints a picture of a company that is aggressively expanding its product lineup while navigating supply chain challenges. The decision to order 10 million foldable iPhone Ultra units shows that Apple believes in the long-term potential of the form factor. With a total of 220 million iPhone orders planned for 2026, Apple is positioning itself for another record year, despite the broader economic uncertainties. The second half of 2026 promises to be one of the most eventful periods for iPhone fans, with three major launches: the iPhone 18 Pro, iPhone 18 Pro Max, and the groundbreaking foldable iPhone Ultra.
Source:9to5Mac News