A relatively new report coming out of the Apple’s iPhone 7 supply chain is indicating that because of some faulty components the company is facing a supply shortage. An industry source who is familiar with the issue gave the statement that, “If Apple sticks to its launch schedule from last year, there may not be enough supply at the beginning, as some suppliers are still trying to fix low yield rates of their components”. This kind of news is a usual for Apple as it is the same thing every year, stemming from Apple’s annual late summer production ramp up ahead of the September iPhone reveal.
Apple is said to be staying close to its launch schedule from last year, which could lead to low supply “during the first round of the rollout,” resulting in low yield rates, higher costs for manufacturers, and subsequently less volume to deliver to customers. Yuanta Investment Consulting analyst Jeff Pu believes total iPhone 7 builds to be 10 million less than that of the iPhone 6s last year. Pu cut his forecasts for iPhone production to 114 million from 120 million, including both new and old models, in the July-December period, due to defects in the waterproof speaker and dual-camera module, which have yet to be resolved.
“We estimate total iPhone 7 builds to be 74 (million) in 2H16F, compared to 84 (million) for iPhone 6s in 2H15. Together with pricing pressure, we expect most Apple food chain suppliers to see (year-on-year) revenue decline for the rest of the year,” Pu wrote in a note dated Aug. 23. Although it’s true that the iPhone 7 will be a modest update on the iPhone 6s, like every model before it, the 2016 iPhone is expected to see a heavy influx of pre-orders the day it goes live on Apple’s website, currently rumored for September 9. Users will then have to wait a few weeks to get their hands on the smartphone, with a launch either onSeptember 16 or September 23.