Apple’s supply chain recalibration is accelerating, with the iPhone Air and the M5 Vision Pro now at the center of fresh adjustments that signal shifting demand and a changing manufacturing playbook.
A new survey from KeyBanc Capital Markets points to very weak interest in the iPhone Air and limited willingness among consumers to pay for a foldable device. By contrast, demand across the rest of the iPhone 17 lineup appears steady, with momentum continuing to favor the iPhone 17 Pro and iPhone 17 Pro Max. In line with those trends, reporting indicates Apple is dialing back iPhone Air production while increasing orders for the other iPhone 17 models. The scale of the cut wasn’t specified.
Apple’s broader foldable roadmap also looks slower than anticipated. The foldable iPad—previously pegged around the $3,900 mark—has reportedly been pushed to at least 2029 as engineers work through the device’s weight and the challenges of its large, 18-inch “giant foldable screen.” Apple is collaborating with Samsung Display in pursuit of a robust panel with a nearly invisible crease, a key hurdle for long-term durability and premium user experience. The company’s first foldable iPhone is also said to be facing delays due to the complexity of the hinge and display stack. Analysts at Mizuho believe Apple has reduced its initial display panel targets from roughly 13 million to about 9 million units.
On the manufacturing front, Apple appears to be diversifying faster. Packaging for the new M5 Vision Pro now shows assembly in Vietnam rather than China. Given that this is Apple’s lowest-volume product, it’s a logical candidate for an early shift as the company spreads risk across its supply chain. The move aligns with broader plans to make upcoming home devices in Vietnam as well, including a HomePod with a 7-inch screen, indoor security cameras, and a tabletop AI robot, with BYD’s facilities expected to play a key role. This pivot is widely seen as a hedge against geopolitical shocks, with Vietnam positioned as a strategic manufacturing hub under favorable trade frameworks.
What it means for consumers is straightforward: expect Apple to keep doubling down on its strongest iPhone segments—the Pro models—while taking a more cautious path on foldables until the technology and economics align. And as Apple expands its footprint in Vietnam, anticipate a more resilient hardware pipeline across categories, from premium headsets to smart home devices.
