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iPhone 8 Without Touch ID Doubtfully Called One 'Likely Option' if Apple Can't Place It Under Display

Apple may be forced to eliminate Touch ID from the tentatively named "iPhone 8" altogether if it cannot resolve issues with integrating the fingerprint sensor underneath the smartphone's display within the next month or so, according to Andy Hargreaves, equity research analyst at Pacific Crest Securities.

"iPhone X" concept by designer Gabor Balogh

Hargreaves isn't the first analyst to think Apple could do away with Touch ID, but the move seems unlikely even as a last-ditch scenario. Touch ID is at the core of Apple Pay, and it appears much more likely that 3D facial or iris recognition would complement rather than replace fingerprint sensing.

A more likely option fielded by Hargreaves is that Apple could delay "iPhone 8" production until its under-display fingerprint sensor solution is ready.

An excerpt from his research note obtained by MacRumors:
Likely options for Apple include a delay of production or elimination of fingerprint sensing on the OLED iPhone. We believe Apple continues to work on solving its optical fingerprint issues. If it's able to solve the problems in the next month or so, it would likely place volume orders at that point. This would likely lead to a delay of the OLED iPhone launch, but we would not expect it to meaningfully affect volume for the cycle. If it's not able to fix the problems in that time frame, Apple may be forced to eliminate fingerprint sensing from the OLED iPhone altogether.
At this point, Hargreaves does not believe Apple's optical fingerprint module provider has received firm orders for production, which to him suggests that Apple does not have functionality of the optical fingerprint sensor ready. Additionally, he said Apple has evaluated and passed on Synaptics' optical fingerprint solution.

Last week, Cowen and Company analyst Timothy Arcuri said Apple is facing yield issues with its AuthenTec-based under-display fingerprint sensor solution. He too speculated that Apple could remove Touch ID, but he believes it's more likely that Apple will put Touch ID on the back of the iPhone or delay production.

If Touch ID were to be removed, Hargreaves said that would place significant pressure on unproven 3D sensing to replace the verification functionality that fingerprints currently provide. However, he said Apple's 3D sensing production appears on track, and could be a viable alternative to fingerprints.
Suppliers suggest that the solution is both fast and highly reliable, even in low-light scenarios or from odd angles. If this proves accurate, reliance solely on 3D sensing for biometric login and verification could be a viable and innovative replacement for the highly popular fingerprint sensor.
In February, KGI Securities analyst Ming-Chi Kuo said the "iPhone 8" will feature a "revolutionary" front-facing camera system with infrared for fully-featured 3D sensing capabilities. The advancements will enable the camera to determine the location and depth of objects placed in front of it.

Pacific Crest Securities maintains a $150 price target for AAPL with an overweight rating.

Related Roundup: iPhone 8 (2017)
Tag: Touch ID


Top Rated Comments

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2 weeks ago
Touch ID is my favorite iPhone feature. It blows my mind anyone would think they'd get rid of it.
Rating: 70 Votes
2 weeks ago
No Touch-ID ?
Then I suspect no Apple-Pay

in which case, No Chance
Rating: 51 Votes
2 weeks ago
You'd think that after three years of the same design they would have done adequate planning to avoid delays.
Rating: 47 Votes
2 weeks ago
I don't get the apparent obsession with getting rid of a tiny amount of front bezel which is actually useful to hold the phone in a way that means you can see the whole display, and also means you can have a satisfying physical button. Especially before they've even removed the long-functionless chin from the iMac.
Rating: 26 Votes
2 weeks ago
All of these crazy rumours completely go out the window once you take away some arbitrary 10th anniversary timescale which they're desperate to hit.

No bezel, touch ID built into the display. That's what they'd want to release. If it's ready in time, they'll release it. If they can't crack the formula yet, they won't ship a half-baked product, and they'll simply release the iPhone 7S instead.
Rating: 15 Votes
2 weeks ago
Asinine...Apple pay doesn't work without Touch ID...iPhone 8 CAN'T ship without it...
Rating: 13 Votes
2 weeks ago
If only they had other new products to announce instead... oh wait, Tim Cook has deigned all other Apple products unworthy of attention for the last 4 years!
Rating: 11 Votes
2 weeks ago
Apple is sitting on massive cash reserves and have shown time and time again that they're willing to delay as long as required for the end product.
Rating: 10 Votes
2 weeks ago
Jobs would never allow this.
Rating: 8 Votes
2 weeks ago
Where is Steve's reality distortion field when you need it...
Rating: 8 Votes

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