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Apple has run into "more issues than expected" with its foldable iPhone that may set back its release, according to Nikkei. The engineering problems reportedly cropped up during the device's early test production phase and may delay first shipments by months, according to multiple sources briefed on the matter. 

"The current situation could put the mass production timeline at risk," one of the sources said. "April will mark a crucial stage of the engineering verification test, and this month till early may is extremely critical." Component suppliers have supposedly been notified that the foldable iPhone's production schedule will be delayed, and Apple is working to address the problems. 

A foldable iPhone has been rumored since 2017, and Apple's biggest rival, Samsung, released its first one back in 2019. According to multiple sources, Apple was aiming to launch its debut foldable iPhone in fall 2026 alongside the iPhone 18. However, as we detailed in an explainer last month, "the project could slip into 2027 if Apple runs into manufacturing or durability issues, particularly around the hinge or display." 

Apple was reportedly prioritizing the foldable iPhone and other premium models for its September event this year due to constrained supplies of components like memory chips. However, the foldable's engineering issues could throw a wrench into those plans. "Apple and the supply chain are working under a pressured timeline and the current solutions are not enough to completely solve the engineering challenge... more time is needed," Nikkei's source stated. 

The problems reportedly arose during Apple's production verification tests. That's the fourth of six steps the company's new products must go through before shipping, prior to the key pilot production and mass production phases. Since the foldable would be an all-new design, it would have to pass each stage with flying colors before proceeding to the next. 

Though likely to account for less than 10 percent of iPhone production, the foldable will be a key product for Apple designed to boost interest in iPhones across its range. Apple reportedly plans to produce seven to eight million of the devices initially, Nikkei reported. Apple has not yet officially announced the device and declined to commented on the reported engineering issues.

Earlier this year, Amazon threatened to cut US Postal Service deliveries by as much as two thirds. Now, the parties have reached tentative a deal that will see USPS deliveries reduced by 20 percent, The Wall Street Journal reported. While not as drastic as first menaced, the reduced volume will deal a financial blow to the USPS.

"We’re pleased to have reached a new agreement with USPS that furthers our longstanding partnership and will let us continue supporting our customers and communities together," an Amazon spokesperson told the WSJ. 

Amazon is the USPS's largest customer, accounting for 15 percent of its volume and $6 billion in revenue. A two-thirds cut would have been a disaster for the USPS, but a 20 percent reduction could still result in more than $1 billion in lost revenue. Amazon would have needed to scramble as well, as it relies heavily on the post office for rural and last-mile deliveries. 

Amazon's contract with the USPS was set to expire in September 2026, and in October Amazon said it wanted to strike a deal by December 2025. However, the USPS abruptly pulled out of negotiations, according to Amazon, and implemented a new bidding process for last-mile deliveries. "Our goal was to increase our volumes with USPS, not reduce them — until USPS abruptly walked away at the eleventh hour in December," the company said at the time. 

Amazon was reportedly considering expanding its own delivery network if the USPS deal fell through, though the company may have started those rumors itself to prod negotiations. The Postal Service decided to re-engage with Amazon after bids from several Amazon rivals fell short of its volume and revenue expectations, according to the WSJ's sources. The new agreement is still subject to approval by the federal Postal Regulatory Commission.