Smash the "delay panic"! Rumors suggest Apple (AAPL.US)'s first foldable iPhone is scheduled to be released in September as planned, with intraday 5% decline significantly narrowed.

Zhitong Finance APP learned that, according to people familiar with the matter, Apple’s (AAPL.US) first foldable iPhone is still expected to debut later this year during the company’s regular iPhone release cycle, dispelling prior concerns about major manufacturing hurdles. These people, who requested anonymity because their plans have not yet been disclosed, said Apple plans to release this foldable model alongside the iPhone 18 Pro and Pro Max in September. Apple’s iPhones typically go on sale within a week after a new product launch.

An earlier report sparked market worries about delays, saying Apple faced challenges during the phone engineering test phase, which could push back production and shipping schedules. As a result, Apple’s stock price fell as much as 5.1% on Tuesday.

People familiar with the matter said that although the complexity of the new display panels and materials may limit supply in the first few weeks, Apple’s current plan is to have the device go on sale at the same time as, or slightly later than, non-foldable new models. After that, Apple’s stock price narrowed its losses; on Tuesday, it closed down by about 2.1%, at $253.50.

However, with six months still remaining until the official launch and mass production not yet started, the timeline is not final. A spokesperson for Apple, headquartered in Cupertino, California, declined to comment.

The device is a major move for Apple, aiming to expand the iPhone product line through new design, higher-priced model options, and enhanced features. Apple is seeking to compete more effectively with Samsung Electronics Co. and China’s smartphone manufacturers, which have already launched foldable phones for years.

For Apple, a foldable iPhone is the second step in its three-year plan to reshape the look and feel of its flagship devices. Last year, Apple rolled out extensively redesigned Pro and Pro Max models, as well as a thinner version called iPhone Air. Apple is also developing a standalone redesigned iPhone model, planned for release in 2027 to mark the device’s 20th anniversary.

The iPhone roadmap has long been a priority for Apple management, including hardware chief John Ternus. As is understood, Ternus is the leading candidate to ultimately succeed CEO Tim Cook.

This foldable iPhone is similar to competing products, but has several key selling points. Apple engineers believe they have addressed the screen quality and overall durability issues—two of the biggest longstanding drawbacks of this type of phone—making the screen crease when unfolded less noticeable.

When unfolded horizontally, the iPhone will offer a wide-screen viewing orientation, making it more effective for watching videos and playing games than the narrower foldable phones available in today’s market. Apple plans to update its iOS operating system so that iPhone apps will display on the new device in a way closer to the iPad software experience.

Meanwhile, the product’s price is expected to break above the $2,000 mark. Although this may suppress some consumers’ willingness to buy, it will raise Apple’s average selling price and help drive growth in the company’s revenue.

At the same time, Apple is adjusting the iPhone’s annual release schedule. According to people familiar with the matter, its next entry-level model will be pushed back to a spring 2027 launch. Apple also plans to introduce a new iPhone Air and a lower-budget iPhone 18e at that time. Apple released the iPhone 17e last month.