Apple has encountered setbacks during the engineering test phase of its first foldable iPhone, which could delay mass production and shipment schedules, according to a report by Nikkei Asia citing sources familiar with the matter.

The report stated that more issues than expected emerged during early test production, and additional time will be needed to resolve them and make necessary adjustments. In a worst-case scenario, shipments could be delayed by several months.

Apple did not immediately respond to Reuters' request for comment. Reuters could not independently verify the report.

Nikkei Asia had reported in January that Apple planned to focus on delivering its first foldable iPhone alongside two non-folding models with upgraded cameras and larger displays, targeting a flagship launch in the second half of 2026.