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iPhone 7 And iPhone 7 Plus Said To Be In Short Supply At Launch

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Apple is expected to launch the iPhone 7 and iPhone 7 Plus in a few weeks. A new report claims the smartphones could be in short supply at launch because of "faulty components."

It seems like every year that Apple launches a new iPhone, there are reported issues with the build of the device and a news item that claims the smartphone will be in short supply, inciting panic for those who want the handset on the day it's officially released.

Apple faced "Antennagate" when it released the iPhone 4 in 2010, as customers reported diminished cellular signal when holding the device. In 2014, the term "Bendgate" became synonymous with the company's first 5.5-inch phablet, the iPhone 6 Plus, with reports of the handset bending while inside pockets.

Then there are issues that hit the new iPhones long before they are officially released. In the days leading up to the launch of the iPhone 6 and iPhone 6 Plus in 2014, multiple reports claimed delays and supply shortages stemming from the new 4.7-inch and 5.5-inch screens.

With only a few weeks before Apple unveils the iPhone 7 and iPhone 7 Plus, a new report is predicting supply shortages of the new iPhones at launch. The shortages are said to be due to problems with faulty components.

"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," said an industry source.

This new claim was also reiterated by Yuanta Investment analyst Jeff Pu, who provided more specific reasons for iPhone 7 and iPhone 7 Plus supply constraints.

Pu reportedly reduced his predictions for the July to December production of both old and new iPhone models from 120 million to 114 million because of unresolved flaws in the dual-camera module and the waterproof speaker.

"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," said Pu.

The iPhone 7 and iPhone 7 Plus are expected to feature a design similar to that of the iPhone 6s and iPhone 6s Plus. The handsets will drop the standard 3.5mm headphone port and ship with redesigned EarPods that will plug into the smartphone's Lightning port.

The iPhone 7 and iPhone 7 Plus will receive upgrades in the camera department, with the 4.7-inch iPhone 7 gaining OIS (optical image stabilization) and the 5.5-inch iPhone 7 Plus featuring a new dual-lens rear camera. Reports also suggest the pair will also ship with a whopping 256 GB of internal storage.

As with all unannounced iPhone reports, take this one with a grain of salt for now. We'll keep you posted on any new information as it becomes available.

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