'iPhone 7' production affected by low yields on waterproof speaker, dual camera - report
As Apple gears up to launch its next-generation iPhone, key components reportedly face production issues, with low yields allegedly seen for the new dual-lens camera expected on the "iPhone 7 Plus."
Citing an industry source familiar with the issue, Nikkei reported on Friday that the "iPhone 7" could face supply issues at launch. Apple's next handset is expected to be unveiled in a matter of weeks, potentially at a keynote presentation on Sept. 7.
Alleged component yield issues were also cited by analyst Jeff Pu of Yuanta Investment Consulting, who subsequently trimmed his total iPhone production forecast from 120 million units for July-to-December down to 114 million.
Beyond the new dual-camera system on the so-called "iPhone 7 Plus," Pu suggested that Apple has also been plagued by defects in a new waterproof speaker it plans to include in this year's handsets. Waterproofing is expected to be a key feature of this year's upgrade, which is rumored to ditch the 3.5-millimeter headphone jack and adopt a new haptic feedback home button to help accomplish that goal.
Demand usually outstrips supply for the debut of any new Apple product, and if that were the case again this year, it would come as no surprise.
The key number, at least at launch, will be 13 million -- that's how many iPhone 6s units Apple sold during the first three days of availability last year. Investors will be clued in to how the next iPhone performs at launch as a potential indicator for how well it will sell over the product's lifespan.
Pu expects that Apple won't be able to build as many "iPhone 7" units in the second half of this year as the company did iPhone 6s units during the same span of 2015. His forecast calls for 74 million "iPhone 7" builds in the latter half of the year, compared with an estimated 84 million for the iPhone 6s last year.
Citing an industry source familiar with the issue, Nikkei reported on Friday that the "iPhone 7" could face supply issues at launch. Apple's next handset is expected to be unveiled in a matter of weeks, potentially at a keynote presentation on Sept. 7.
Alleged component yield issues were also cited by analyst Jeff Pu of Yuanta Investment Consulting, who subsequently trimmed his total iPhone production forecast from 120 million units for July-to-December down to 114 million.
Beyond the new dual-camera system on the so-called "iPhone 7 Plus," Pu suggested that Apple has also been plagued by defects in a new waterproof speaker it plans to include in this year's handsets. Waterproofing is expected to be a key feature of this year's upgrade, which is rumored to ditch the 3.5-millimeter headphone jack and adopt a new haptic feedback home button to help accomplish that goal.
Demand usually outstrips supply for the debut of any new Apple product, and if that were the case again this year, it would come as no surprise.
The key number, at least at launch, will be 13 million -- that's how many iPhone 6s units Apple sold during the first three days of availability last year. Investors will be clued in to how the next iPhone performs at launch as a potential indicator for how well it will sell over the product's lifespan.
Pu expects that Apple won't be able to build as many "iPhone 7" units in the second half of this year as the company did iPhone 6s units during the same span of 2015. His forecast calls for 74 million "iPhone 7" builds in the latter half of the year, compared with an estimated 84 million for the iPhone 6s last year.
Comments
Déjà vu.
2010: iPhone 4 'supply constrained": http://touchreviews.net/iphone-4-supplies-constrained-ipads-shipping-quantities/
2011: iPhone 4s "supply constrained" http://www.cnet.com/news/analyst-report-iphone-4s-supply-issues-due-to-constrained-key-component/
2012: iPhone 5 "supply constrained" http://www.computerworld.com/article/2472844/smartphones/apple-iphone-5-faces-supply-constraints-as-consumer-attitude-shifts.html
2013: iPhone 5s "supply constrained" http://www.pocket-lint.com/news/123724-iphone-5s-supply-is-highly-constrained-better-get-in-line-early
2014: iPhone 6 "supply constrained" http://www.ubergizmo.com/2014/10/iphone-6-demand-far-outstripping-its-supply/
2015: iPhone 6s "supply constrained" http://indianexpress.com/article/technology/mobile-tabs/apple-iphone-6s-plus-facing-supply-constraint-report/
2016 iPhone SE "supply constrained" http://forums.appleinsider.com/discussion/192917/apple-faces-constrained-iphone-se-supply-on-surprise-demand
Either someone is not the master of the supply chain as has been oft-stated or there's always hokey reports of "constrained supply" planted around the time of every new model release. Quick, get 'em while you can!
I I wonder if the rumor mill has a boilerplate: iphone [X] production issue due to [insert part]
I bet they do.
Good research bad interpretation. Look to stock manipulation rather than Apple dirty tricks (hard as that may be for some).
Of course if there are "supply constraints" as regularly reported with new models in past years it would call into question how much of a supply chain expert Mr. Cook is. It would be hard to believe that after 8 years and 11 models since 2009 they still can't get a handle on it.
I agree with digitalclips. There is no reason to suspect that Apple needs to generate falls news a month before a release to help drive sales. I don't know if I would squarely point the finger at stock manipulators, when it seems much easier that it's the result of news-ish outlets looking for a story, so they jump on the obvious one where Apple is buying as many components as possible for a launch because they know they will sell out no matter how many how they can make.*
* Sure, there is definitely an upper limit to how many people in the world will both want and can afford an iPhone at launch, but that upper limit has not been met since the original iPhone. Even if Apple does have too many iPhones for the US market, it would simply mean they could add additional countries to their first weekend launch. We've already seen this number vary greatly, yet we've never come close to having every country that Apple services having the iPhone launched the same weekend.
Real or phony production issues are reasonably good click-bait, and they are impossible to refute.
A few weeks after iPhone "7" is released, demand will exceed supply whether or not there are "production issues."
And the post doesn't even require a component "spy shot".