Apple may skip the launch of its standard iPhone 18 this year. According to reports, the company is currently struggling with supply chain constraints as well as a global shortage of memory chips. A report from Nikkei Asia, citing people familiar with the matter, claims that Apple has decided to delay the regular iPhone 18 until the first half of 2027. Instead, this year’s iPhone lineup is expected to focus on premium models and the company’s highly anticipated first foldable iPhone.

Apple’s reported plan to scale back its iPhone launches comes at a time when memory chip prices are rising globally, largely due to rising demand for artificial intelligence data centers. Memory manufacturers are struggling to keep up, creating disruptions that are now spreading throughout the consumer electronics industry, including Apple.

Apple CEO Tim Cook acknowledged the challenges during the company’s earnings call, saying, “The constraints we face are driven by the availability of the advanced nodes on which our SoCs are produced, and at this time, we are seeing less flexibility than usual in the supply chain.” Cook said the current situation is partly a result of increased demand for Apple’s cutting-edge chips.

Another reason for delay in iPhone 18 launch

The iPhone 18 delay isn’t just due to chip shortage. According to reports, Apple’s decision is also strategic. Rising material costs along with the technical complexity of developing a foldable iPhone has reportedly led Apple to prioritize higher-margin premium devices. “The smoothness of the supply chain is one of the major challenges this year, and changes in marketing strategy also played a role in the decision,” an executive at an iPhone supplier told Nikkei Asia.

Interestingly, at the heart of Apple’s supply challenges is its reliance on Taiwan Semiconductor Manufacturing Company (TSMC) for advanced chip production. While TSMC dominates lead manufacturing, it is facing strain in keeping up with demand as AI companies compete aggressively for the same advanced nodes. Cook is working to increase his access to Apple supplies.

While Apple said the impact of rising memory prices last quarter was “minimal”, the CEO warned that the pressure will become more noticeable in the coming months. He also said the company was exploring “a range of options” to manage the situation. Meanwhile, Apple is gradually expanding its domestic chip sourcing, revealing it will buy about 20 billion chips in the US in 2025, up from 19 billion last year.

Apple plans to delay the launch of the iPhone 18 despite reporting better-than-expected earnings in its latest quarter. The company reported strong demand for the iPhone, particularly in China, which helped revenue beat Wall Street expectations.