iPhone 7 Facing Supply Shortages as Production Ramps Up Ahead of Launch

Following tradition, a new report out of Apple's supply chain is hinting that the company "may need to contend with a supply shortage" for the iPhone 7 and iPhone 7 Plus, citing vague issues with "faulty components" as the central problem (via Nikkei). Similar stories have emerged before the launch of the new iPhone nearly every year, stemming from Apple's annual late-summer production ramp-up ahead of the September iPhone reveal.

"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," an industry source familiar with the issue said.

Apple is said to be staying close to its launch schedule from last year, which could lead to low supply "during the first round of the rollout," resulting in low yield rates, higher costs for manufacturers, and subsequently less volume to deliver to customers. Yuanta Investment Consulting analyst Jeff Pu believes total iPhone 7 builds to be 10 million less than that of the iPhone 6s last year.

iPhone 7 Space Black

Pu cut his forecasts for iPhone production to 114 million from 120 million, including both new and old models, in the July-December period, due to defects in the waterproof speaker and dual-camera module, which have yet to be resolved.

"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 note dated Aug. 23.

Continuing the usual doom-and-gloom sentiment regarding Apple's 2016 iPhone sales, the new report points to "weakening demand" for the iPhone 7 and iPhone 7 Plus as a contribution to manufacturing numbers falling as well. Apple's own orders are said to be "conservative" this year compared to years past, with individual components dropping precipitously year-over-year. According to various sources, core processor chips "may drop up to 15 percent," and panel orders "are dropping around 20 percent," both compared with the company's 2015 supply chain orders.

Although it's true that the iPhone 7 will be a modest update on the iPhone 6s, like every model before it, the 2016 iPhone is expected to see a heavy influx of pre-orders the day it goes live on Apple's website, currently rumored for September 9. Users will then have to wait a few weeks to get their hands on the smartphone, with a launch either on September 16 or September 23.

Top Rated Comments

(View all)
Avatar
52 months ago
Something tells me they're not going to have to worry about it this year.
Score: 50 Votes (Like | Disagree)
Avatar
52 months ago
Ample availability = Apple is doomed.

Shortages = Apple is doomed.

Apple releasing a new product any time later than the current day = Apple is doomed.

Apple putting impressive new internals in a case that LOOKS the same = Apple is doomed.

Samsung putting mediocre new internals in a case that LOOKS the same = Apple is doomed.
Score: 18 Votes (Like | Disagree)
Avatar
52 months ago
every single year ;d
Score: 18 Votes (Like | Disagree)
Avatar
52 months ago
This is ALWAYS posted a month before launch. I've haven't had an issue getting an iPhone on launch day in a long time.
Score: 11 Votes (Like | Disagree)
Avatar
52 months ago
If there's a supply shortage, Apple can tout, "We've seen incredible demand for iPhone 7. So much demand that we can't even keep up" while the shipping time on the online store page reads "Ships in 2-3 weeks."

Which.... Is what tends to happen to some extent every year.
Score: 10 Votes (Like | Disagree)
Avatar
52 months ago
where have i heard this before?
Score: 9 Votes (Like | Disagree)

Top Stories

Apple-Acquired Dark Sky Officially Shuts Down Android App

Saturday August 1, 2020 3:43 pm PDT by
Apple in March purchased weather app Dark Sky, and at that time, Dark Sky's developers said that the app's Android version would be discontinued on July 1, 2020. However, instead of shuttering the app on that date, the app's developers announced that the discontinuation would be delayed for another month. Now that it's August, Android users are no longer able to access the app, and...

Apple May Launch This Year's 'iPhone 12' Lineup in Two Stages, With 6.1-inch Models Debuting First

Monday August 3, 2020 3:14 am PDT by
Apple last week confirmed that its "‌iPhone‌ 12" launch will be delayed this year due to the ongoing global health crisis and restrictions on travel. Apple last year started selling iPhones in late September, but this year, Apple projects supply will be "available a few weeks later," suggesting a release sometime in October. We're expecting a total of four OLED iPhones in 5.4, 6.1, and...

Apple Announces New 27-Inch iMac With 10th-Gen Processors, Up to 128GB RAM, 1080p Webcam, True Tone, and More

Tuesday August 4, 2020 8:07 am PDT by
Apple today announced a new 27-inch iMac with faster 10th-generation Intel Core processor options, next-generation AMD graphics, up to 128GB of RAM, a higher-resolution 1080p front-facing FaceTime camera, a True Tone display with a nano-texture glass option, a T2 chip, higher fidelity speakers, studio-quality microphones, and more. A breakdown of the new 27-inch iMac's features and specs:10th...

Apple Explains Why You Might See 'Not Charging' When a Mac is Plugged In

Monday August 3, 2020 1:42 pm PDT by
If you have a Mac and have seen a "Not Charging" warning when plugging it in to power, Apple last week released a support document that explains why. Macs running macOS 10.15.5 or later have a Battery Health Management feature to preserve the life of the battery, and occasionally, the Battery Health Management option will cause the Mac to pause its charging for calibration purposes.Depending ...

Top Stories: Try the 5.4-Inch iPhone 12 Display Size, Blockbuster Earnings, Tim Cook at Antitrust Hearing

Saturday August 1, 2020 6:00 am PDT by
Another busy week of Apple news and rumors has wrapped up, with a lot of focus on Tim Cook's appearance at a Congressional antitrust hearing and a blockbuster earnings report. Subscribe to the MacRumors YouTube channel for more videos. We continued to hear rumors about the upcoming iPhone 12 lineup, including a rare admission from Apple that the lineup will launch "a few weeks later" than...

Unreleased iPod Touch with Mac Pro Glossy Black Finish Shared Online

Sunday August 2, 2020 11:32 am PDT by
Twitter user @DongleBookPro has today posted images of what seems to be a first-generation iPod Touch prototype with a 2013 Mac Pro-style glossy black finish. The Twitter user claims that the iPod Touch prototype pictured has "the same coating as the 2013 Mac Pro." Had the finish been selected for the final product, it also would have been similar to the metallic glossy black finish that...

Just How Small Will the 5.4-Inch iPhone 12 Screen Be? Try It Out for Yourself

Tuesday July 28, 2020 12:57 pm PDT by
As rumors of the iPhone 12 have continued to build over the past few months, the one model that has the most excitement around it is the smallest 5.4" model. The iPhone 12 is believed to be coming in 5.4", 6.7", and 6.1" sizes. Dummy models have shown how much smaller the 5.4" is compared to the rest of the iPhone lineup. The upcoming 5.4" iPhone falls in-between the size of the original...

Everything New in iOS 14 Beta 4: Apple TV Widget, Search Improvements, Exposure Notification API and More

Tuesday August 4, 2020 11:14 am PDT by
Apple today released the fourth developer betas of iOS and iPadOS 14 for testing purposes, tweaking and refining some of the features and design changes included in the update. Changes get smaller and less notable as the beta testing period goes on, but there are still some noteworthy new features in the fourth beta, which we've highlighted below. - Apple TV widget - There's a new Apple TV...

Microsoft to Stop Supporting Office 2016 for Mac in October

Monday August 3, 2020 12:21 pm PDT by
Microsoft's Office 2016 for Mac is set to reach its end of support date on October 13, 2020, and after that date, connecting to Office 365 services using the Office 2016 for Mac software will no longer be supported. Microsoft shared the detail in a support document from July highlighting which versions of Office will be supported for connecting to Office 365 services in the future.Connecting ...

Apple Shares Requirements for Default Third-Party Browser and Email Apps With Developers

Monday August 3, 2020 4:28 pm PDT by
Apple in iOS 14 plans to allow users to set a third-party app as the default email or browser app on an iPhone or iPad, replacing the current Apple-made default apps Safari and Mail. Apple hasn't provided many details on the new feature to users, but as noted by MacStories' Federico Vittici, Apple has shared documentation with developers who want their apps to have the option to be set as a...