Everyone is expecting Apple Inc. (NASDAQ:AAPL) to release its 10th anniversary iPhone 8 in September. Consumers, wireless providers, retailers and AAPL investors. Apple’s new ultra-premium flagship is going to be a big deal and September is the month when new iPhones are typically launched. However, there may be a problem with that timeline. A new report out today says the advanced technology Apple is using is causing manufacturing problems in the supply chain.
As a result, the company may be forced to move the iPhone 8 launch to October or even November.
The iPhone 8 is Expected to Incorporate New Technology
Apple has been making a big deal about 2017 being the 10th anniversary of the iPhone. While the company is expected to release an iPhone 7s — the usual spec bumped version of last year’s model — it is also hard at work on the iPhone 8. This would be an ultra-premium smartphone positioned above the iPhone 7.
The technology Apple is packing in this 10th anniversary edition is rumored to include curved OLED panels — an Apple first, although they have been used by rival Samsung (OTCMKTS:SSNLF) for several years.
The new iPhone is also expected to pack a revolutionary 3D FaceTime camera, which could be a key component of AAPL’s augmented reality plans. These new features are a big part of the reason why Apple could be charging $1,000 or more for its 10th anniversary iPhone.
Unfortunately, they’re also causing some problems that could result in an iPhone 8 delay, at least according to DigiTimes, the Chinese website that tracks Apple and its supply chain.
Manufacturing Challenges Could Derail iPhone 8 Launch
This morning, DigiTimes
“Technical issues related to the lamination process of curved OLED panels, and the adoption of a 3D sensing system may cause the delay of the new iPhone devices.”
Manufacturing delays related to incorporation of advanced new technology have derailed launch plans for several high-tech companies lately.
GoPro Inc (NASDAQ:GPRO) faced a shortage of its new Hero5 Black action camera going into the holiday season because of a manufacturing problem. Fitbit Inc (NYSE:FIT) also stumbled going into the holidays when manufacturing issues meant it was unable to ramp up volume production on its new Flex 2 fitness tracker. Apple itself ran into production glitches that caused at launch.
Potential Impact on the iPhone 8 Launch
Apple is looking for September to be a monster month and if the iPhone 8 launched gets delayed until October or even November, as the DigiTimes report suggests, that’s going to throw a serious wrench in the company’s plans.
MacRumors . AAPL may still go ahead with the usual September iPhone event, but use that to showcase the iPhone 7s and 7s Plus, holding a separate iPhone 8 launch later in the year. Or, it may launch the iPhone 7s in September, but also announce the iPhone 8 — with a later release date.
There’s also a possibility that the company may be able to eke out enough iPhone 8 production to go ahead with the September launch, but with very limited iPhone 8 quantities until later in the year.
Regardless of the scenario, it’s continuing to look like AAPL is not going to entirely get its way with the iPhone 8 launch. The hype will be there and undoubtedly there will be line-ups of people ready to fork out $1000-plus for a new iPhone. The question is, will Apple be able to get an iPhone 8 to them before they get tired of waiting and a buy an iPhone 7s — or worse, one of the competition’s new phones — instead?
As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.
