Engineering issues during the testing phase are very normal! Morgan Stanley: Apple's foldable device is "unlikely to be delayed in its release."

Engineering issues during the testing phase are very normal! Morgan Stanley: Apple's foldable device is "unlikely to be delayed in its release."

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On April 7, market reports claimed that Apple’s first foldable iPhone might be delayed, causing investor concerns. Apple’s stock price (AAPL) fell about 2% that day, underperforming the S&P 500 by 225 basis points and closing at $253.50.

According to Wind Chaser Trading Desk, Morgan Stanley analyst Erik Woodring, after conducting a supply chain check, pointed out that the relevant stock price decline lacks fundamental basis. Both his supply chain information and an independent report by Bloomberg indicate that the release schedule for the foldable iPhone has not been adjusted, and the original plan to release in September is likely to remain unchanged. Technical barriers at the EVT (Engineering Validation Test) stage are a normal part of the R&D process, as this stage is meant to identify and solve issues. The hinge issue this time is expected to be resolved before mass production begins in the summer.

Morgan Stanley reiterated its Overweight rating on Apple, maintaining a target price of $315, implying about 24% upside potential from the current share price. The institution believes that for position-holding investors, this correction could present a buying opportunity.

Conflicting Reports Stir Market Volatility

On April 7, 2026, Nikkei Asia first reported that Apple’s first foldable iPhone encountered technical setbacks during the engineering test phase, which might delay the timeline for mass production and shipments. Subsequently, media outlets like MacRumors cited sources pointing out that the delay was due to stalled pricing negotiations with manufacturing partners, as well as the hinge material plan not being finalized.

However, just hours later, Bloomberg released a report stating explicitly that Apple's first foldable iPhone would still launch later this year, according to the regular iPhone release schedule.

Morgan Stanley quickly carried out a supply chain check on the same day; the results showed that a core iPhone component supplier clearly stated there were no observed order adjustments related to the foldable iPhone. Based on this, the bank maintains its previous forecast for 2026 iPhone shipments and seasonal rhythm.

Engineering Issues During Testing Are Not Uncommon

Every Apple hardware product must go through three test stages before mass production: EVT (Engineering Validation Test, usually starting in early spring each year), DVT (Design Validation Test), and PVT (Production Validation Test, the final check before mass production). Currently, the foldable iPhone is in the EVT stage, with initial tests identifying engineering issues related to the new foldable screen hinge.

Morgan Stanley cited two historical cases as illustrations:

  • iPhone 15 Pro: A problem was found with the haptic touch feature at the EVT stage, so Apple was forced to revert to mechanical buttons; however, this adjustment did not affect the release schedule.
  • iPhone X (2017): The 3D sensing TrueDepth camera system had low yields at the time, causing the iPhone X to be announced in September but actual shipments were delayed by about two months compared to other new models.

The current R&D test cycle for the foldable iPhone is proceeding normally, with no abnormal supply chain fluctuations and no changes to the September release schedule. For long-term investors bullish on the shift in product form brought by the first foldable iPhone and the construction of the Apple Intelligence ecosystem, this market overreaction may present a window to build positions.

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