Apple iPhone 7, iPhone 7 Plus could face supply shortages at launch: Report

Apple is widely expected to unveil the new iPhone 7 and iPhone 7 Plus next week on September 7. And while August is about to end, Apple is yet to send out media invites for the launch event. Now, according to a latest report, Apple is facing supply constrains due to ‘faulty components,’ which could delay the launch of the new iPhones. It may also impact the availability of new iPhones at launch. Citing sources, Nikkei reports, “If Apple sticks to its launch schedule from last year, there may not be enough supply at the beginning, as some suppliers are still trying to fix low yield rates of their components.”

Yuanta Investment Consulting analyst Jeff Pu has cut iPhone production forecast for the period July-December to around 114 million units, compared to 120 million, which includes both old and new models. While this won’t be the first time for Apple to face inventory problems. Last year’s iPhone 6s also faced shortage at launch. “We estimate total iPhone 7 builds to be 74 (million) in 2H16F, compared to 84 (million) for iPhone 6s in 2H15. Together with pricing pressure, we expect most Apple food chain suppliers to see (year-on-year) revenue decline for the rest of the year,” Pu wrote in a research note. Pu has also pointed out that defects in dual-camera module and waterproof speaker are yet to be resolved.

From what we know so far, the new iPhones won’t look any different from the existing iPhone 6s and iPhone 6s Plus. However, the new iPhone 7 and iPhone 7 Plus are expected to bring major under the hood upgrades which has been long overdue. The ugly antenna bands at the back are likely to be moved towards the top and bottom edge of the iPhones. The traditional 3.5mm jack is also set to go away and the new iPhones could come with improved waterproofing compared to the iPhone 6s-family.


While the screen size of the new iPhones is expected to remain the same, Apple is likely to offer the much-needed resolution bump. The iPhone 7 could sport a 4.7-inch full HD display, whereas the iPhone 7 Plus could sport a 5.5-inch QHD display. With 4K videos and 64-bit bit apps consuming a lot of space, Apple is also likely to upgrade the base storage from 16GB to 32GB, with maximum storage capacity up to 256GB. ALSO READ: Rumor has it: The Apple iPhone 7 will be a massive upgrade over the iPhone 6s

In the camera department, the iPhone 7 could sport optical image stabilization to allow you capture blur free photos, something that is exclusive to the ‘Plus’ models. The iPhone 7, on the other hand, is expected to come with a dual camera module at the back, allowing users to add DSLR-like ‘Bokeh’ effects to the photos. The new iPhones could also come with slightly larger capacity battery and 3GB of RAM on the iPhone 7 Plus for that extra processing. ALSO READ: Apple Watch 2 leaked photos reveal 36% larger battery, here’s everything we know so far

Along with the new iPhones, Apple is also expected to unveil the Apple Watch 2 with built-in GPS, 36 percent larger battery capacity, barometer and improved water resistance. There are reports that Apple may also introduce refreshed Apple Watch (first generation) with improved water resistance. With less than 10 days to go for the rumored launch event, it remains to be seen what all surprises Apple has for its customers.

Apple iPhone 7, iPhone 7 Plus could face supply shortages at launch: Report