SAN FRANCISCO, July 2 -- When Apple launched the first iPhone in 2007, Steve Jobs priced it at $499 because he wanted one in every pocket. This September, Apple plans to ship a device expected to cost $2,500 - and simultaneously lobby the Trump administration to let it buy memory chips from Chinese suppliers the Pentagon considers a military risk. Those two facts are products of the same crisis.

Apple raised its production target for the foldable iPhone Ultra to 10 million units, Nikkei Asia reported Wednesday, up from an earlier forecast of 7 to 8 million. The increase signals Apple believes sufficient demand exists at a price point no consumer smartphone has tested at scale. IDC projects the device will average $2,500, with maximum-sto...