A design issue with a component may postpone the release of Apple's foldable iPhone.

According to The Elec, Mizuho Securities informed clients that Apple has not yet finalized the design or specifications for its first foldable phone. Issues remain regarding certain components, including the hinge, which is crucial for foldable devices.

Apple intended to implement a unique hinge to minimize the crease common in foldable phones. Analyst Ming-Chi Kuo recently suggested the hinge could cost $20-$40 less than anticipated. The current hinge price is estimated between $100 and $120, but Kuo expects it to drop to $70-$80 during mass production.

AppleInsider reports that Mizuho's client note indicates mass production of a foldable phone by Q3 2026 for a September release is challenging. The final design and hinge specification decisions could delay the iPhone Fold's launch until 2027.

Mizuho is not ruling out a 2026 release but predicts a reduction of 5-7 million units from the original iPhone Fold forecast if it occurs. The expected number of panels produced has also been lowered to 9 million from 13 million.

Mizuho analysts claim the foldable phone will have a 5.38-inch external display and a 7.58-inch internal display. Previous reports in April suggested a 5.49-inch external screen and a 7.76-inch internal screen. For comparison, the Samsung Galaxy Z Fold 7 has an 8-inch internal display and a 6.5-inch external screen.

Touch ID, which debuted on the iPhone 5s in 2013 but was replaced by Face ID on the iPhone X in 2017, is expected to return with the foldable iPhone.

Foldable phones remain a relatively small segment of the global smartphone market, and many analysts believe this will persist until Apple releases a foldable device. Foldable phones are projected to represent 1.5%-1.6% of the global smartphone market in 2025, with total shipments reaching 19.8 million this year. Huawei leads the foldable market with a 45% share as of Q2.

Motorola's Razr line has performed well this year, doubling its global market share to 28% and securing second place. Samsung held 9% of the foldable market in Q2, prior to the release of the Galaxy Z Fold 7 and Z Flip 7.

As of Q2 2025, Motorola and Samsung ranked first and second in the U.S. foldable market, respectively.