"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," an industry source familiar with the issue said.
Jeff Pu, an analyst at Yuanta Investment Consulting, also cites concerns with supply. He cut forecasts for production down from 120 million to 114 million in the July-December period due to defects with the waterproof speaker and dual-lens camera module.
"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.
Apple is widely expected to unveil the iPhone 7 on September 7th with pre-orders going live on September 9th. The device will likely be released in stores on September 16th.