Severe Supply Shortages Again Rumored for iPhone 8 Due to Production Difficulties

There have been several rumors suggesting the upcoming OLED "iPhone 8" could potentially be delayed due to production delays, and in a new note to investors sent out today, KGI Securities analyst Ming-Chi Kuo reiterates his prediction that production ramp-up will be delayed.

According to Kuo, who titled his note "Rising probability of worst-case scenario for iPhone shipments," production ramp-up of the iPhone 8 could be delayed to "as late as October-November," a departure from Apple's traditional August to September ramp-up period.

The result will be "severe supply shortages" that persist for "a while" after the new iPhone models are introduced in September. To be clear, Kuo continues to believe Apple will introduce the iPhone in September, but he suggests there's a strong possibility the device will be hard to come by for several months following its release.

iphone 8 benjamin geskin

"iPhone 8" mockup with rear Touch ID sensor by Benjamin Geskin

Due to the possible iPhone 8 shortages, Kuo believes Apple may only ship 80 to 90 million iPhone units during the second half of 2017, down from 100 to 110 million units. Kuo does say it's not clear if demand will fully shift to the iPhone 8, due to questions about the usefulness of a rumored 3D sensor, the potential for Touch ID to be eliminated, and market competition.

While we are positive on potential replacement demand triggered by OLED iPhone, it's too early to determine if demand will shift fully in that direction. We recommend investors keep tabs on the following issues: (1) whether the 3D sensor of OLED iPhone provides an innovative user experience; (2) whether OLED iPhone cancels Touch ID (fingerprint recognition); and (3) whether Apple's competitors launch more innovative products which could compete with OLED iPhone in 4Q17-2Q18.

It is not unusual for us to hear rumors of production delays and supply shortages ahead of an iPhone release, and indeed, the iPhone 7 Plus was constrained for months after its launch, but the warnings about the iPhone 8 are popping up more frequently from trusted sources and are more dire than warnings we've seen for past iPhone release cycles.

Rumors have suggested that Apple is struggling with integrating the Touch ID fingerprint sensor underneath the glass of the iPhone 8, which has led to production difficulties. Due to these issues, rumors have also indicated that Apple could potentially put Touch ID on the back of the device or perhaps more unlikely, eliminate it entirely in favor of other biometric systems, like facial recognition. Kuo has not mentioned removing Touch ID entirely in previous research notes, but the wording of today's document seems to suggest he believes it's a possibility.

Apple is also said to be having trouble with the display lamination process and integrating a new 3D sensing front camera system into the device. Given the major design changes coming in the iPhone 8, including an edge-to-edge OLED display and a glass body, it is not surprising to hear that many of the new technologies involved are causing production problems.

Some rumors have suggested Apple could delay the debut of the iPhone 8 entirely, not introducing it in September, but most rumors believe the company will show it off at the event and perhaps launch it in small quantities.

Related Forum: iPhone

Popular Stories

iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro to Reverse iPhone X Design Decision

Monday July 7, 2025 9:46 am PDT by
Since the iPhone X in 2017, all of Apple's highest-end iPhone models have featured either stainless steel or titanium frames, but it has now been rumored that this design decision will be coming to an end with the iPhone 17 Pro models later this year. In a post on Chinese social media platform Weibo today, the account Instant Digital said that the iPhone 17 Pro models will have an aluminum...
iOS 26 Feature

Everything New in iOS 26 Beta 3

Monday July 7, 2025 1:20 pm PDT by
Apple is continuing to refine and update iOS 26, and beta three features smaller changes than we saw in beta 2, plus further tweaks to the Liquid Glass design. Apple is gearing up for the next phase of beta testing, and the company has promised that a public beta is set to come out in July. Transparency In some apps like Apple Music, Podcasts, and the App Store, Apple has toned down the...
apple wallet drivers license feature iPhone 15 pro

Apple Says iPhone Driver's Licenses Will Expand to These 8 U.S. States

Tuesday July 8, 2025 11:26 am PDT by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Unfortunately, this feature continues to roll out very slowly since it was announced in 2021, with only nine U.S. states, Puerto Rico,...
iphone 16 pro ghost hand

5 Reasons to Skip This Year's iPhone 17 Pro

Thursday July 10, 2025 4:54 am PDT by
Apple will launch its new iPhone 17 series in two months, and the iPhone 17 Pro models are expected to get a new design for the rear casing and the camera area. But more significant changes to the lineup are not expected until next year, when the iPhone 18 models arrive. If you're thinking of trading in your iPhone for this year's latest, consider the following features rumored to be coming...
apple account card feature

Apple Account Card Expanding to More Countries

Tuesday July 8, 2025 7:34 pm PDT by
Apple is expanding the ability to add an Apple Account Card to the Wallet app to more countries, according to backend Apple Pay changes. With iOS 15.5, Apple updated the Wallet app to allow users to add an Apple Account Card, which displays the Apple credit balance associated with an Apple ID. If you receive an Apple gift card, for example, it is added to an Apple Account that is also...
iPhone 17 Pro in Hand Feature Lowgo

Leaker Reveals Amount of RAM in iPhone 17 Through iPhone 17 Pro Max

Wednesday July 9, 2025 8:08 am PDT by
Three out of four iPhone 17 models will feature more RAM than the equivalent iPhone 16 models, according to a new leak that aligns with previous rumors. The all-new iPhone 17 Air, the iPhone 17 Pro, and the iPhone 17 Pro Max will each be equipped with 12GB of RAM, according to Fixed Focus Digital, an account with more than two million followers on Chinese social media platform Weibo. The...
iphone 16 pro models 1

Here's How the iPhone 17 Pro Max Will Compare to the iPhone 17 Pro

Saturday July 5, 2025 1:00 pm PDT by
Apple should unveil the iPhone 17 series in September, and there might be one bigger difference between the Pro and Pro Max models this year. As always, the Pro Max model will be larger than the Pro model:iPhone 17 Pro: 6.3-inch display iPhone 17 Pro Max: 6.9-inch displayGiven the Pro Max is physically larger than the Pro, it has more internal space, allowing for a larger battery and...
imac video apple feature

Apple Launching These 15+ Products Later This Year

Sunday July 6, 2025 8:05 am PDT by
The calendar has turned to July, meaning that 2025 is now more than half over. And while the summer months are often quiet for Apple, the company still has more than a dozen products coming later this year, according to rumors. Below, we have outlined at least 15 new Apple products that are expected to launch later this year, along with key rumored features for each. iPhone 17 Series iPho...

Top Rated Comments

andy.ringwood Avatar
107 months ago
Apple, take your time, embed Touch ID under the screen and release it before Christmas and I'll be happy (as others would be as well, I'm sure).
Score: 35 Votes (Like | Disagree)
Vertigo50 Avatar
107 months ago
Let me go ahead and give you a preview of the months between now and the release date for the next iPhone:

Rumors point to shortages

Rumors of shortages may have been wrong

Rumors point to shortages

Rumors of shortages may have been wrong

Rumors point to shortages

Rumors of shortages may have been wrong

Rumors point to shortages

Rumors of shortages may have been wrong

Rumors point to shortages

Rumors of shortages may have been wrong

Rumors point to shortages

Rumors of shortages may have been wrong

Release Date
Score: 31 Votes (Like | Disagree)
blacktape242 Avatar
107 months ago
every year this is rumored.
Score: 27 Votes (Like | Disagree)
prowlmedia Avatar
107 months ago
This literally is the Sponsored by Ming-Chi Kuo Website isn't it. I do wonder how much money KGI securities have made from this repetition of rumors as claims of inside knowledge?
Score: 16 Votes (Like | Disagree)
applelover1016 Avatar
107 months ago
Tell us whether or not the device will have the fingerprint sensor in the display. That's pretty much all we care about at this point, we know it's going to be limited and hard to get, it always is. These reports are literally reiterating the same things over and over lol.
Score: 8 Votes (Like | Disagree)
JoEw Avatar
107 months ago
Hate to be that guy but how does a 800 billion dollar company with more capital than most countries have trouble ramping their bread and butter product?

Yes yes it's a big endavour to scale a device as popular as the iPhone but Apple has had a lot of time to work on this. The 7 was basically 6ss I thought because this phone was taking priority.
Score: 8 Votes (Like | Disagree)