Apple is gearing up its supply chain for a significant increase in iPhone shipments next year. According to a new report, the company has set a production target of about 95 million iPhone 18 models for 2026. That’s up from the 85 million iPhone 17 units planned for 2025, marking an increase of roughly 10 percent. The iPhone 18 lineup is expected to debut in the fall.
Foldable iPhone to trigger Demand
The centerpiece of Apple’s 2026 strategy is the long-anticipated foldable iPhone. While the new form factor is likely to capture most of the attention, Apple expects demand to rise across the entire iPhone 18 family. That lineup is said to include the iPhone 18 Pro, iPhone 18 Pro Max, iPhone Air 2, and the iPhone Fold.
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Apple believes the excitement around the folding device will create a halo effect, encouraging many customers to upgrade even if they ultimately choose a traditional slab model. Supply chain projections suggest that the company sees the foldable as a catalyst for broader growth, not just a niche product.
Trial Production in Taiwan, Mass Manufacturing in India
Nikkei Asia reports that Apple has discussed with suppliers the possibility of setting up a test production line for the foldable iPhone in Taiwan. The goal is to fine-tune equipment, parameters, and processes before shifting large-scale manufacturing to India. Once validated, the production model would be replicated at factories in India, a country that has become central to Apple’s global supply strategy.
Sources told Nikkei that Apple suppliers are considering land in northern Taiwan for the pilot line, which would require about a thousand operators. While the plan is not finalized, the trial run would shorten Apple’s learning curve and help ensure a smoother rollout of foldable iPhone production.
India’s Role in Apple’s Supply Chain Shift
The move reflects Apple’s continued diversification away from China. Almost all iPhones sold in the United States already come from Indian factories, while international units are still primarily built in China. With the foldable project, Apple is signaling that India will play a growing role in new product launches.
Apple’s suppliers face challenges in India, including restrictions on importing production equipment from China and bringing in Chinese technicians. To offset this, Apple is cultivating more local Indian suppliers and expanding ties with Taiwanese toolmakers.
Strategic Push
Apple’s approach also highlights ongoing geopolitical concerns. Tensions between Washington and Beijing, as well as between Beijing and New Delhi, have complicated the company’s reliance on China for production. By using Taiwan for pilot testing and India for mass production, Apple is working to mitigate risk and build resilience into its supply chain.
Apple aims to ship more than 240 million iPhones in total in 2026, a 10 percent jump from this year’s estimated 220 million units. The early supply chain targets provide a framework for suppliers, though Apple remains flexible and will adjust orders based on consumer demand and component availability.
Apple declined to comment when contacted by Nikkei Asia.
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