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iPhone 8 Will Suffer From Severe Supply Shortages Upon September Release: How Bad Will This Affect Apple?

24 April 2017, 11:40 pm EDT By Aaron Mamiit Tech Times
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As prototypes and schematics of Apple's upcoming premium smartphone, the iPhone 8, leak through various online channels, one of the biggest questions surrounding the device is its release date.

There have been rumors that the iPhone 8 will see a significant delay of one month or two months, compared to the regular release schedule of Apple. A new note by famed Apple insider, KGI Securities analyst Ming-Chi Kuo, corroborates these claims.

iPhone 8 Mass Production Pushed Back

According to Kuo, the mass production of the OLED iPhone will likely be delayed until October or November. The timeframe is a few months later than the usual August to September period for Apple's launch of new iPhone models.

The iPhone 8, which features several major components that Apple custom-ordered specifically for the smartphone, will still be released in September. However, with mass production delayed, the smartphone will suffer from severe supply shortages for some time after launch.

The significant hardware upgrades for the iPhone 8, including its custom OLED display, custom Apple A11 10-nanometer chipset, new 3D Touch module, and 3D sensing cameras, are tagged as the primary causes of the mass production delay.

Kuo, meanwhile, expects the iPhone 7s to be released on the normal schedule. Apple is expected to announce the iPhone 7s and iPhone 7s Plus in September, alongside the iPhone 8. Most customers, however, will likely have to wait before they are able to purchase the OLED iPhone.

How Will The iPhone 8 Delay Affect Apple?

Kuo claims that the one-month to two-month delay for the mass production of the iPhone 8 will have a negative impact on the sales of Apple for the 2017 calendar year. A delayed release for the iPhone 8 will mean that it will be in the market for about two fewer months for 2017.

With the delayed mass production for the iPhone 8, KGI has revised its expected sales for the new iPhones, namely the iPhone 7s, the iPhone 7s Plus, and the iPhone 8. From the previous figure of 110 million units collectively sold for the second half of the year, the expected number of units sold has been reduced to 80 million to 90 million.

However, over the long term, Kuo believes that the mass production delay and subsequent supply shortage will not undermine the demand for the iPhone 8. Sales may not be high for the iPhone 8 for 2017, but it should pick up once 2018 rolls in as supply normalizes and demand increases for the smartphone.

iPhone 8 Rumors

Leaked prototypes and schematics for the iPhone 8 have so far shown different looks on one of the most polarizing issues regarding the smartphone's design. While a leaked schematic showed that the Touch ID sensor of the iPhone 8 is moved to the back of the device, a leaked prototype revealed no Touch ID at the back, with the technology presumably located underneath the iPhone 8's screen.

Other rumors concerning the iPhone 8 claim that the smartphone will have an edge-to-edge display with no Home button, support for augmented reality technologies, and the name iPhone Edition.

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