Apple plans five iPhone launches to capture market share amid component shortages
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Apple is reportedly planning to launch at least five new models by this time next year, with the company expanding its foldables' production. Amid surging component prices and a weakening smartphone market, these moves may be a bid to gain market share while rivals are on the back foot. Nikkei Asia reported that, along with three models set to be released in the second half of 2026, Apple also plans to launch at least two new iPhones — the iPhone 18 and a new iPhone Air model — during the first half of the following year. Plans are also being made to offer more low-priced iPhones as early as spring 2027. Apple exercises a large degree of bargaining power across its suppliers, even during the current component crunch. The company has reportedly arranged the parts for 80 million smartphones in total for the second half of this year. This will include its first foldable iPhone, of which suppliers have been told to prepare for the manufacture of 10 million of these this year, a figure above previous months' expectations of 7 to 8 million units. High-end brands win out amid tight supply The US-based tech company has maneuvered aggressively to secure these components at a time when shortages are forcing other smartphone companies to raise prices or cut production. Data from Counterpoint Research shows that global smartphone shipments are expected to drop 14% this year compared with 2025. The low-end phone market is particularly affected by rising memory prices, which are expected to persist until the second half of 2027. This is putting pressure on cheaper smartphones, such as those from Chinese brands offering models priced below US$150 that have smaller margins. By contrast, the premium-end phone market dominated by companies like Apple is likely to fare much better due to their existing higher profit margins and brand following. Even though the component crunch has also forced Apple to raise its prices, it still remains in a position of strength relative to competitors, according to DIGITimes Intelligence analyst Luke Lin. He noted that it held out for longer than competitors before dialing up prices, attributing this to a matter of protecting existing margins rather than surviving. The company's upcoming rapid iPhone roll-out could be a move to capture market share while other companies are winding down shipments. The foldable iPhone Apple's entry into the premium foldable smartphone market may be another push to cushion its margins during this tough time in the market. Foldables were already priced higher than typical smartphones, according to Counterpoint Research, with average selling prices (ASPs) around US$1,255 last year. These premium devices offer higher profit margins and draw early adopters who are less affected by price changes. The emergence of foldable iPhones is expected to bring ASPs even higher, as it will bring attention to higher-priced models and subsequent software, apps, and other features. Book-type foldables that fold horizontally, rather than clamshell-type ones that fold vertically, are also making up a growing share of models and will likely push prices up as brands use features like larger screens. This is an important factor as smartphones begin to incorporate AI features that require users to monitor agentic workflows. Shipments for foldable smartphone panels are set to grow nearly a quarter in 2026 compared with last year, according to Counterpoint Research, while revenues are predicted to rise 48% in that period. This is driven in part by Apple's entry into this segment, which is likely to spur panel procurement in the second half of the year. Article edited by Jerry Chen
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