Apple has reportedly hit unexpected snags in early testing of its first-ever, $2,000 foldable iPhone — forcing engineers to grapple with issues that are “more complex” and time-consuming than originally anticipated, according to a report.

Shares of Apple slid as much as 5.1% on Tuesday after Nikkei Asia cited people familiar with the matter as saying the problems were serious enough to potentially delay the device’s rollout by months.

The setbacks emerged during a critical engineering test phase, with some suppliers warned that production timelines could be pushed back as Apple scrambles to resolve the technical challenges.
“April will mark a crucial stage of the engineering verification test, and this month till early May is extremely critical,” the source added.

An unidentified source told Bloomberg News that Apple could limit initial supply of the foldable devices for several weeks, though the company is still planning to offer up the product for sale at around the same time — or shortly after — the non-foldable models are rolled out.
Apple has so far stayed out of the foldable category while working through engineering challenges tied to the device’s design and durability.

Bloomberg News reported that Apple believes it has solved persistent problems that have plagued foldable phones, including screen quality, durability and the visibility of the display crease when unfolded.

The company is betting that its long-awaited entry into foldables — expected to cost more than $2,000 — will help it better compete with rivals and lift revenue by pushing up the iPhone’s average selling price.