Tech giant Apple will delay the release of its standard iPhone 18 until the first quarter of 2027, though the high-end Pro series remains on track for a September launch.
The staggered release schedule is the direct result of severe memory and semiconductor shortages, according to Taiwanese electronics manufacturer Pegatron. The assembly partner confirmed the unprecedented shift during its investor conference on Wednesday, noting that structural supply chain issues are forcing tech companies to make strategic production choices.
This marks a significant departure from Apple’s usual autumn release strategy, where all flagship models typically debut simultaneously to capture the lucrative holiday shopping season.
AI servers drain global supply chain
The production delay stems primarily from bottlenecks in upstream semiconductor manufacturing and a widespread scarcity of key electronic components. The explosive global growth of the artificial intelligence sector has aggressively absorbed the vast majority of advanced memory and wafer foundry resources this year.
Consequently, chipmakers currently face major delays in advanced packaging processes as they wait for memory supplies to arrive. This bottleneck has severely hindered the mass production of crucial system-on-chip components required for modern smartphones. Faced with these dual hardware shortages, Apple has opted to prioritise its available components for the higher-margin iPhone 18 Pro models.
Despite the setback, Pegatron executives maintained that the overall market demand for consumer electronics will not vanish. Management suggests that the traditional peak shipping period for smartphones will simply shift to a later date once supply chain constraints ease.
A massive pivot toward AI infrastructure
While navigating these smartphone headwinds, Pegatron is rapidly reallocating its research and manufacturing resources to capitalise on the lucrative artificial intelligence boom. The Taiwanese firm expects its AI server business to grow more than tenfold this year alone.
Pegatron co-CEO Deng Guoyan revealed that the company is actively engaging with several major cloud service providers to expand its market footprint. He added that the company might spin off its AI server operations into a fully independent business unit in the coming years if the division’s revenue successfully surpasses NT$100bn.
Overall smartphone shipments are expected to decline slightly this year because of the ongoing supply crunch. However, Pegatron plans to continue building its manufacturing and research capabilities in the mobile sector to drive long-term growth across its other product lines.
When questioned about potential iPhone retail price increases due to surging memory costs, Pegatron clarified that final pricing decisions rest entirely with Apple and assembly partners have no influence over consumer costs.
