Will ALL New Apple Inc. (AAPL) iPhones Face Delays?
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Apple Inc. (NASDAQ:AAPL) has a lot riding on this September’s iPhone launches. Over the past year, the company has faced slowing –and in some quarters declining — sales of the iPhone, its primary source of revenue.
Source: Apple
There have been numerous reports that the iPhone 8 is facing production challenges that could result in very limited launch quantities. But now the situation is looking a little grimmer for AAPL, with reports that the iPhone delay could extend to the iPhone 7s as well.
iPhone Delay Expected for New AAPL Flagship
AAPL’s iPhone 8 is shaping up to be the ultimate in flagship smartphones. At this point, leaks from Apple’s supply chain point to an all-glass smartphone, with an OLED display that covers virtually the entire front face, wireless charging and a revolutionary front camera that supports the company’s push into AR. Initially, speculation was that starting price tag could hit $1,000. The possibility of a $1,200 sticker is now being thrown around.
Pent up demand from upgraders who have been waiting for something that looks different from their iPhone 6, the expected rush of Apple fans who jump on any new iPhone and possible switchers were painting the picture of a whopper launch for AAPL. That is important for the company and its investors, because iPhone sales have been slowing this year, and even declining in some quarters. And iPhone sales are the primary driver of AAPL revenue.
But then claims of an iPhone delay began to grow. Those OLED panels can be in short supply, the advanced 3D cameras apparently need software refinement and even the location of the Touch ID sensor seemed to be causing Apple designers fits. The specter of a very limited supply of the iPhone 8 at launch is not what AAPL wanted. But it also has the iPhone 7s launching in September. That was expected to help carry the day, providing a new iPhone for those who want an immediate upgrade.
But a new report out of China says that the iPhone 7s is also facing production delays.
The iPhone 7s Late to Enter Mass Production?
China’s DigiTimes is reporting that the iPhone 7s is not expected to enter mass production until August. If it’s true that this model is not yet being produced at full volume, that puts it one to two months behind historical mass production times.
Apple typically needs several months of high volume production in order to have sufficient quantities of a new iPhone shipped and in stock in time for the traditional early September launch.