Apple’s Double Whammy This Week: Foldable iPhone Delays And Chinese AI Patent Setback — But Retail Stays Bullish

• Apple has informed certain component suppliers about a stretched timeline.
• Meanwhile, a Chinese court has rejected Apple’s request to invalidate the AI patents for Xiao-I’s AI, which in 2020 sued the iPhone maker for infringement of its Siri voice assistant.
• Stocktwits sentiment for AAPL shifted to ‘extremely bullish’ from ‘bullish.’

Apple, Inc. is reportedly encountering engineering hurdles in developing its first foldable iPhone, which could push back mass production and shipments by several months. Still, the stock remains in the green this week, and retail investors turned more bullish ahead of the second-quarter report.

The foldable iPhone issues are taking longer to resolve than Apple had anticipated, Nikkei Asia reported Tuesday, citing multiple sources familiar with the matter. The Cupertino-based company has even notified a few component suppliers of a possible delay in the component production schedule for the foldable iPhone.

"It's true that more issues than expected have emerged during ​the early test production phase, and ​additional time will be needed to resolve them and ‌make ⁠necessary adjustments," the report said, quoting one source familiar with the matter.

Apple’s China Patent Suit Blow

The development comes close on the heels of Apple suffering an unfavorable patent ruling in China. Last week, the Supreme People’s Court rejected Apple’s request to invalidate Xiao-I’s AI patents, according to the Chinese company. 

The development pertains to a 2020 $1.4 billion lawsuit by Xiao-I alleging that Apple’s Siri voice assistant infringed its patents, which is ongoing.

Apple’s Foldable iPhone Plan

Previously, Apple reportedly pushed back production of the standard iPhone model to early 2027 to prioritize premium models, including foldable iPhones, and to better allocate constrained supplies of memory chips and other key resources.

While Apple has not officially revealed details about a foldable phone, reports over the past two years have consistently indicated that the device is in development, even as timelines have shifted. More recent reports suggest Apple is targeting a debut during its fall 2026 launch cycle.

Foldable phones are complex and have received mixed responses from customers. The crease on the screen where the phone folds, the durability of the hinges, and pricing have been points of concern. Last month, Samsung said it would discontinue its $2,899 Galaxy Z TriFold smartphone after roughly three months on the market, as a steep price tag deterred most buyers and relegated it to a niche product.

Apple has planned to initially produce about 7 million to 8 million foldable iPhones, according to Nikkei Asia's supply chain checks with industry managers and market experts. The device accounts for less than 10% of Apple's initial planned production volume for this year's new lineup.

Apple has already released a string of new devices this year, including the budget-friendly iPhone 17e and the $599 MacBook Neo, which Bank of America said on Monday was Apple’s first real push into lower-end PC consumers and could result in "a meaningful tailwind” for revenue. 

The research firm reiterated its ‘Buy’ rating on AAPL and a $320 price target (27% upside from last close), citing multiple catalysts, including AI at the edge, the launch of a foldable iPhone, and strong capital returns.

iPhone 17s Set High Bar

The company’s iPhone 17 line has been hugely popular, with sales up 23.3% to a record $85.3 billion last quarter, the strongest since the September quarter of 2021. 

The performance, reported in January, along with the company’s relatively modest capital spending outlook, has supported AAPL stock in recent months as investors rotated funds out of tech companies.

Retail’s View On AAPL

AAPL shares are down 4.7% year-to-date, compared to the 4.1% drop in the Invesco QQQ Trust Series 1 (QQQ) and an 11.5% decline in the Roundhill Magnificent Seven ETF (MAGS). The stock, along with Google, has weathered this year’s shaky market better than most of its ‘Mag 7’ peers and still trades at an attractive 30x forward multiple.

On Stocktwits, retail sentiment shifted to ‘extremely bullish’ early Tuesday, compared to ‘bullish’ the previous day. The sentiment reading has climbed gradually over the past two weeks. Meanwhile, 30-day message volume for the ticker has increased 375%, signaling renewed interest in the stock.

Apple is set to report fiscal second-quarter results on April 30.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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