Apple is preparing a major shift in its iPhone launch strategy for 2026, placing its most premium devices front and centre as demand for high-end models surges and manufacturing constraints intensify.
According to a report by Nikkei Asia published on Friday, January 30, Apple plans to prioritise production and shipment of three high-end iPhone models in 2026.
The report said Apple will delay the launch of its standard model, with the regular iPhone 18 now expected to ship in the first half of 2027, rather than alongside flagship devices.
Foldable iPhone, upgraded flagships
The company reportedly intends to release its first-ever foldable iPhone in the second half of 2026, alongside two non-folding premium models featuring larger displays and upgraded cameras.
The shift reflects a change in marketing priorities and growing production challenges linked to rising memory prices and increasingly complex manufacturing processes.
Supply-chain pressures
Nikkei Asia said Apple’s strategy is aimed at maximising revenue and profits while managing risks associated with higher material costs and advanced production techniques.
“Supply chain smoothness is one of the key challenges for this year, and the marketing strategy change also played a part in the decision,” an executive at an iPhone supplier told the publication. Foldable devices, in particular, require more intricate sourcing and assembly, increasing the risk of production disruptions.
Reuters said it could not immediately verify the Nikkei Asia report. Apple did not respond to a request for comment made outside regular business hours.
Focus on premium devices
The reported strategy shift comes as Apple delivered blockbuster quarterly results, driven largely by robust iPhone sales. On Thursday, Apple beat Wall Street expectations for revenue, with CEO Tim Cook describing demand for the latest iPhones as “staggering.”
The iPhone 17 lineup helped fuel growth across major markets, easing fears that Apple’s hardware business was nearing a plateau.
Record iPhone revenue, margins
Apple reported iPhone revenue of $85.27 billion for its fiscal first quarter ended December 27, far exceeding analysts’ expectations of $78.65 billion. The company said iPhone sales set records in every geographic region.
Overall quarterly revenue rose 16% year-on-year to $143.8 billion, beating the LSEG estimate of $138.48 billion. Earnings per share reached $2.84, well above the $2.67 consensus.
Despite higher prices for DRAM memory chips and commodities such as gold, Apple reported gross margins of 48.2%, exceeding both its own guidance and analysts’ expectations.
Cook declined to comment on memory prices in his interview, saying the issue would be addressed during Apple’s earnings call with analysts.
China rebound boosts confidence
One of the strongest performances came from Greater China, where revenue jumped 38% year-on-year to $25.53 billion, well above estimates. Cook said iPhone sales hit a record in the region, despite competition from local brands and regulatory challenges.
He added that the iPhone 17 drove double-digit growth among users switching from Android devices.
While Apple does not disclose country-specific figures for India, Cook told Reuters that the company recorded double-digit growth there, with revenue records across iPhones, Macs, and other products.
He also confirmed plans to open a new Apple store in Mumbai, underlining India’s importance as a growth market.
Mixed results across other product lines
Not all segments outperformed expectations. Revenue from wearables, home, and accessories totaled $11.49 billion, below forecasts of $12.04 billion.
Cook said demand for AirPods Pro 3, which include real-time language translation features, exceeded supply, limiting growth during the quarter.
Mac revenue came in at $8.39 billion, slightly under estimates, while iPad sales rose to $8.6 billion, beating expectations on the back of education demand and higher-priced iPad Pro models.
Apple’s services business posted record revenue of $30.01 billion, broadly in line with forecasts. Earlier this month, Apple announced a partnership with Alphabet to integrate Gemini AI models into its ecosystem, part of its broader push into artificial intelligence.
The reported iPhone strategy highlights how Apple is balancing ambitious innovation, including foldable devices, with supply-chain realities and cost pressures.
With premium models driving profits and global demand remaining strong, Apple appears set to double down on high-end hardware as the cornerstone of its future growth.
