'Severe supply shortages' of Apple's 'iPhone 8' said to be a major concern through end of ...
Analyst Ming-Chi Kuo is once again cautioning investors that Apple's anticipated flagship "iPhone 8" could be in extremely limited supply to end 2017, thanks to the expected adoption of a number of new technologies, namely an edge-to-edge OLED display.
The KGI Securities analyst issued a note on Monday, a copy of which was obtained by AppleInsider, cautioning that production ramp of the so-called "iPhone 8" could begin as late as October or November. That would be later than the usual August-September timeframe for a new flagship iPhone.
Kuo said the potential delays could come about because of production difficulty. He warned investors that "severe supply shortages" could persist for awhile, which would cap total shipments of new iPhones in the second half of 2017.
Rumors of supply constraints on new iPhones and new Apple products are not new. But in recent history, whenever Apple brings new technology to market -- such as with the dual-camera system on the iPhone 7 Plus, or the completely wireless AirPods, or the new product category of Apple Watch --there have been severe stock issues.
In fact, this year's "iPhone 8" launch could further be compounded by the fact that other handsets are also expected to utilize edge-to-edge OLED displays. Kuo said he believes seamless, large screens will become a major selling point for high-end smartphones, which could leave legacy LCD-based designs in the dust.
In particular, Apple is rumored to launch two more iPhones this year --an "iPhone 7s" and "iPhone 7s Plus" -- that will feature largely the same design as the iPhone 7 series. While the "iPhone 8" is believed to come in one size with a 5.2-inch OLED primary display area, the "iPhone 7s" lineup is expected to come with the same 4.7- and 5.5-inch LCD panels as past models.
Kuo cautioned that the "7s" series could lose its appeal to high-end users if full-screen designs become expected among consumers.
Kuo had forecast new iPhone shipments to reach as high as 110 million in the second half of 2017. But he has now cautioned that a "worst case scenario" could cut his estimates by 15 to 25 percent, to between 80 million and 90 million units.
"Notably, we see a higher probability of the worst case scenario becoming a reality," he wrote.
Beyond a large OLED display, Apple's rumored tenth anniversary iPhone is also said to boast a glass back with wireless charging, 10-nanometer A11 processor, the removal of the physical home button for a virtual onscreen one, and a premium price tag starting at more than $1,000.
It's expected that Apple will hold an event in September to announce its new iPhone lineup. But if the new technology in the "iPhone 8" leads to problems, it's possible that the handset could launch later than usual, and in limited quantities.
The KGI Securities analyst issued a note on Monday, a copy of which was obtained by AppleInsider, cautioning that production ramp of the so-called "iPhone 8" could begin as late as October or November. That would be later than the usual August-September timeframe for a new flagship iPhone.
Kuo said the potential delays could come about because of production difficulty. He warned investors that "severe supply shortages" could persist for awhile, which would cap total shipments of new iPhones in the second half of 2017.
Rumors of supply constraints on new iPhones and new Apple products are not new. But in recent history, whenever Apple brings new technology to market -- such as with the dual-camera system on the iPhone 7 Plus, or the completely wireless AirPods, or the new product category of Apple Watch --there have been severe stock issues.
In fact, this year's "iPhone 8" launch could further be compounded by the fact that other handsets are also expected to utilize edge-to-edge OLED displays. Kuo said he believes seamless, large screens will become a major selling point for high-end smartphones, which could leave legacy LCD-based designs in the dust.
In particular, Apple is rumored to launch two more iPhones this year --an "iPhone 7s" and "iPhone 7s Plus" -- that will feature largely the same design as the iPhone 7 series. While the "iPhone 8" is believed to come in one size with a 5.2-inch OLED primary display area, the "iPhone 7s" lineup is expected to come with the same 4.7- and 5.5-inch LCD panels as past models.
Kuo cautioned that the "7s" series could lose its appeal to high-end users if full-screen designs become expected among consumers.
Kuo had forecast new iPhone shipments to reach as high as 110 million in the second half of 2017. But he has now cautioned that a "worst case scenario" could cut his estimates by 15 to 25 percent, to between 80 million and 90 million units.
"Notably, we see a higher probability of the worst case scenario becoming a reality," he wrote.
Beyond a large OLED display, Apple's rumored tenth anniversary iPhone is also said to boast a glass back with wireless charging, 10-nanometer A11 processor, the removal of the physical home button for a virtual onscreen one, and a premium price tag starting at more than $1,000.
It's expected that Apple will hold an event in September to announce its new iPhone lineup. But if the new technology in the "iPhone 8" leads to problems, it's possible that the handset could launch later than usual, and in limited quantities.
Comments
Fool me once, shame on you, fool me twice, shame on me!
1) increase the price of the iPhone 8 higher, or price the iPhone 7s lower to make up for the sales differential. Remember that supply and demand chart from economics? Yeah, me too. If there's not a lot of the iPhone 8 to go around, then premium price the MOFO and let the market correct the problem. Of course we'll get people on here who think Apple is a charity and should give away their products, but oh well.
2) Delay the release. Aside from "leaks" and "analysts", no one know for sure Apple's plans here. They may just choose to wait until next year, or announce in early 2018. It's their prerogative. They don't have to release it now unless there's a market reason to do so like the S8 is eating their lunch (doubtful)
3) They launch it and people who want one will need to wait. I can guarantee you that people will wait months for theirs with no qualms. Heck, I waited about 3-months for my jet black iPhone 7. Love it. Never had a regret waiting and NEVER thought about switching to Android. NEVER. People that do that are idiots especially if they know the hardware and software advantages of the iPhone. Those are people who just want the newest thing to be cool or whatever. Have at it...
Keeping these "analysts" blabbing-on creates false expectations and undermines sales that will ultimately hurt sales of this year's iPhone 7s..
The real question for Apple is where are the new Macs??????
These analysts talk about smartphones like they're some of a device people can't survive without having a new one. So what if consumers have to wait a while to get some fancy new smartphone? Look how long consumers who pre-ordered Teslas have to wait and yet the stock price keeps going up to the stars. Apple's iPhone profits are much higher than Tesla's profits. Why aren't Tesla investors concerned about actual product delays?
Same old shortages as every year is getting old. These are all RUMORS. As in FAKE NEWS!!!
As GUESS which is as good as these people's guesses is that Apple is drop numbers all together just as they have with other things. The latest being the iPad. Why do you need a number? So my guess there will be a:
iPhone
iPhone Plus
iPhone Pro
and maybe a updated iPhone SE, though announced at the same time, maybe not. This iPhone Pro will be the one with the OLED screen. Then again, maybe it's still just the iPhone and iPhone Plus and they're both with a OLED screen. Whatever phones Apple releases, they're the 2017 model phones.
Yawn.
I highly doubt that such will be the case. Samsung makes its profits primarily from its components. There is no reason to short Apple on the panels it needs to meet demand. The sale of each panel contributes to Samsung profits. Samsung will take sales from the other much smaller OEMs to keep Apple happy and to maximize their own profits. The only caveat is if the Galaxy S8 sells in much higher quantities than expected. Samsung might be tempted in such a case to divert panels slated for Apple to go into their own line. Samsung would NOT divert sales to any other high end phone maker from Apple otherwise. No other OLED producer can produce the same quality panels at the volumes and prices that Samsung can. It means the Pixel, the Mate series from Huawei and other high end makes will be going back to LCD.
http://bgr.com/2017/01/17/iphone-8-rumors-oled-shortage/
If Kuo sees that kind of demand for the S8, he should say so. Otherwise, the rumor seems a little far-fetched. Apple will price the models accordingly. The only supplier going forward that can meet Apple's demands is Samsung. It means all others not named LG who can build the panels for their own line of high end line of phones will be left high and dry.
The article mentions OLED panels specifically as the potential bottleneck. Conceivably, TSMC should have their 10 nm fabs running well for the upcoming A11 SOC.
Apple is doomed, nobody's going to be able to buy the phone cause they're selling so many!!!!!
(that's an extrapolation of a god old yogi berra quote: nobody goes to that restaurant cause its always full...