Apple adjusted its 2026 product strategy following its largest-ever iPhone quarter. The change responds to ongoing chip shortages.
The company will now prioritize high-margin premium devices. This includes its first foldable iPhone and two other top-tier models. Apple plans the launch for late 2026. Consequently, the standard iPhone 18 release is postponed until 2027.
CEO Tim Cook acknowledged that supply chain challenges limit Apple's capacity to meet strong consumer demand. Cook highlighted an anticipated significant impact from an AI-driven memory shortage. This shortage affects the March quarter and compounds difficulties securing advanced 3-nanometer chips from manufacturing partners.