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iPhone 8 Supply Could Be Severely Constrained, Production to Ramp Up Months After Debut?

iPhone 8 Supply Could Be Severely Constrained, Production to Ramp Up Months After Debut?

Posted April 24, 2017 at 2:02pm by iClarified
Another report is warning of severe supply constraints for the iPhone 8 due to a delayed production ramp up.

Various analysts and leakers have pointed to delays in production due to difficulty integrating the Touch ID sensor under the display. KGI Securities analyst Ming-Chi Kuo has issued a new research note which suggests that production could be delayed to October-November, deferring demand until next year. As long as the iPhone 8 lives up to the hype, the delay 'won't undermine actual demand'.

Production ramp up of OLED iPhone could be delayed to October-November (previously estimated to be August-September, as in previous years). That said, if new features, such as 3D sensing, can provide good user experience, a temporary supply shortfall won’t undermine actual demand, which may be deferred to 1H18. In that case, potential contribution starting late-2Q17 from OLED iPhone could be partially delayed by 3-6 months for related suppliers.

Apple competitors including Samsung, Huawei, OPPO, Vivo, and Xiaomi are all preparing to launch 'high-end full-screen smartphones' this year which could impact the iPhone 7s models making them less appealing. Consequently, Kuo has adjusted shipping estimates to take the iPhone 8 delay into account.

As a worst case scenario, Kuo believes iPhone shipments could decrease by 15 to 20% resulting in 80 to 90 million units shipped versus a previous estimate of 100 to 11 million units. "We see a higher probability of the worst case scenario coming to pass," writes Kuo.

While we believe the announcement and launch time of the new iPhones will be similar to previous ones, production ramp up of OLED iPhone could be delayed to as late as October-November compared to the usual ramp up period of August-September, due to increased production difficulty. In other words, severe supply shortages may persist for a while after the new models are launched, capping total shipments of new iPhones in 2H17.

Make sure to follow iClarified on Twitter, Facebook, or RSS for more iPhone 8 updates. You may also want to check out the CNC dummy model allegedly based on iPhone 8 specifications from Foxconn.

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iPhone 8 Supply Could Be Severely Constrained, Production to Ramp Up Months After Debut?
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Comments (4)
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D4xM4Nx - April 24, 2017 at 3:43pm
True or not, what Apple needs to focus on is quality above anything else. It's ok if they take their time to polish the final product, we can't afford to support a half-baked iPhone only for Apple to meet a deadline.
stevenlacross - April 24, 2017 at 3:05pm
When is a new iPhone debut not constrained?
Fred Ziffle
Fred Ziffle - April 24, 2017 at 2:09pm
They use the same scam every year. Guess if people keep falling for it, don't change what works.
Great! - April 25, 2017 at 1:14am
Let's see you make a phone as popular without constraints
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