Minor Engineering Hurdles Pose No Major Threat: Morgan Stanley Affirms Foldable iPhone on Track for September Launch, Supply Chain Shows No Order Changes

Stock News04-09 10:25

Morgan Stanley has indicated that Apple's (AAPL.US) foldable iPhone remains on schedule for a potential September release, aligning with earlier foreign media reports. Analyst Erik Woodring stated in a client note, "To date, we have not identified any delays to the foldable iPhone launch timeline. Earlier today, an iPhone component supplier informed us they have not observed any order adjustments specific to the foldable iPhone. Consequently, we are maintaining our existing forecasts for iPhone shipment volumes and seasonal trends in 2026." This week, reports surfaced suggesting that engineering challenges for the foldable iPhone were more complex than Apple initially anticipated, potentially requiring additional time to resolve. Some outlets speculated that, in a worst-case scenario, the launch could be postponed by several months. Furthermore, MacRumors hinted at potential late-stage obstacles in the production process. Woodring, who maintains an "Overweight" rating on Apple with a $315 price target, believes interpreting these conflicting reports requires historical context. He explained that Apple typically undergoes "multiple phases" of testing, specifically Engineering Verification Tests (EVT), to validate product functionality and design, ensuring a smooth transition to mass production. Historically, EVT for iPhones occurs between June and August. However, EVT for the foldable iPhone has already commenced. Woodring suggests this indicates Apple may have encountered a "minor engineering issue" requiring extra attention, potentially related to the display hinge mechanism of the foldable device. He added, "Since Apple is still in the early stages of EVT, the full impact of any engineering hurdles on the foldable iPhone's launch timing remains uncertain, so a delay possibility persists. Nonetheless, based on our supply chain checks and other public reports, component shipments and the launch timeline for the foldable iPhone have not changed. We believe Apple anticipates resolving this issue before mass production begins this summer, keeping the foldable iPhone on track for a September 2026 release."

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