iPhone 8 Production Issues May Cause Supply Shortfall
Inside sources reveal Apple’s new iPhone has witnessed a deluge of production glitches from early in the manufacturing process, which could potentially birth extended supply shortfalls once customers start ordering the device later this month.
It is claimed production glitches caused a month’s delay to the manufacturing schedule.
On the back of strong demand, the latest iPhone is generally in short supply following its release. However, if the iPhone 8 supply shortfalls extend past the initial sales period (expected to commence around September 22nd), sales projections could be severely hampered during the lucrative holiday period.
Production delays reportedly arose after the company decided to utilise OLED screens for its new device, whilst also removing the home button. Sources state Apple also tried to embed a fingerprint scanner (‘Touch ID’), however, as it proved too difficult the feature was abandoned, which only contributed to the production delay.
The transition to OLED display caused Apple some frustration. Despite being produced by a Vietnamese-based affiliate of Samsung Electronics, Apple’s OLED screen requires more processes, causing a higher risk of manufacturing error.
It’s been said that Foxconn Technology Group – contracted by Apple to assemble the iPhone – has been ramping up its production processes at its facility in Zhengzhou, China. The company boasts a workforce of 250,000 (in June) and is said to be paying bonuses to any employees who can recruit new hires.
Sales numbers for the iPhone 8 are highly anticipated, as investors hope the device will rejuvenate sales for the Californian company, resulting in a push of its share price to new highs in recent months.
Featuring more expensive components (with a base price near $1000), some analysts estimate Apple will ship about 5 million units in the last week or so of September.
Apple has also divulged that it expects a total revenue of $49 billion to $52 billion for the quarter ending September 30th. These forecasts beat some analysts expectations.
Since 2008, Apple has faced supply shortfalls with each new iPhone release. 2014 was the last time Apple changed the iPhone’s appearance, and at that time Foxconn battled with lower output in the face of display manufacturing issues.
Thus far, neither Apple, Foxconn nor Samsung Display has offered comment to the reports.