Apple Dealers Set To Be Stripped Of Early iPhone Revenue
Apple dealers and smartphone carriers could be hit in the fourth quarter with Apple tipped to delay the launch of their all new iPhone 8.
Normally the launch of a new iPhone is a major generator of revenue for carrier’s. Authorised retailers whose margins are often squeezed by Apple also benefit from a new iPhone launch due to Apple owners often needing to buy additional cables which retailers benefit from.
Based on a brand-new iPhone design aimed at taking Samsung on, Apple, who unlike Samsung, don’t make any of their own components is struggling because of shortages of key components such as Organic Light Emitting Diode, or OLED display screens which ChannelNews understands are being made by LG, Samsung and Sharp.
The last few iPhone models have begun shipping in mid-to-late September, now there is talk that the launch could slip to October a move that could give Samsung an advantage with the Korean Company still on track to launch their new Samsung Note 8 in New York in August.
Another problem for Apple is that due to the addition of new components the new device is tipped to sell in Australia for over $1,390 which could push a lease package up to over $90 with owners not even owning the device at the end of the lease cycle.
According to Asian suppliers the iPhone 8 will ship 3-4 weeks delayed given technological issues which Apple and its suppliers are working through,’ analysts Wamsi Mohan and Stefano Pascale have said
The analysts said problems with finger print and 3-D sensors were to blame for the delay.
The BofAML analysts cut their expectations for September quarter shipments of iPhones by 11 million and the December quarter by 6 million.
For fiscal year 2017, the analysts expect 11 million fewer shipments for 2017, down to 208.1 million.
Recent reports say Apple is working ‘feverishly’ to fix software problems with its wireless charging and 3D face recognition systems.
If these issues aren’t resolved, the flagship iPhone could even launch with these major features disabled, according to some sources.
A report by Fast Company explains that a ‘a source with knowledge of the situation’ has claimed that engineers and designers at Apple are working with a ‘sense of panic in the air.’
The report states: ‘The company has been working feverishly to fix software problems in its hotly anticipated 10th-anniversary iPhone that could ultimately cause production and delivery delays, the source says.
‘If the software problems aren’t resolved quickly, the new flagship iPhone could even launch with major features disabled.’
Questions are also being raised as to the value that phone carriers and Apple dealers are placing on the value of an old iPhone at the end of a lease with several complaining to SmartHouse that they have been “ripped off” due to sellers of the lease packages claiming that damage to a device reduces the value they will pay at the end of a lease.
According to the WSJ, the new phone is expected to feature an edge-to-edge OLED display like the Samsung Galaxy S8 that went on sale in April. This is becoming a popular way for smartphone makers to increase their display real estate without bloating the device’s size farther.
Counterpoint Research projects shipments of such OLED devices will hit 115 million this year and triple next year as OLED supply improves.
According to sources Apple is reportedly having trouble getting the home button scanner to work under the display glass on the new design after the US Company chose to eliminate a hard home button.
Andy Hargreaves of KeyBanc Capital says Apple will need to order the necessary chips for the feature by next month in order to manufacture enough devices ahead of the peak Xmas New Year buying period.
According to several people that ChannelNews has spoken to Apple’s customers who are famous for their loyalty are starting to move away from the brand to Android based smartphones.
Samsung has benefited from this move.
Some say that the new iPhone and the lack of certain capabilities may test more than just the loyalty of its most ardent fans.