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Analyst: Low yields on embedded Touch ID tech is Apple's biggest problem with the iPhone 8

Posted: , by Alan F.

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Analyst: Low yields on embedded Touch ID tech is Apple's biggest problem with the iPhone 8
Yesterday, we told you about the Wall Street analyst who now expects 3D-sensing to be pushed back to 2018's Apple iPhone 8s. The feature, to originally be found in the front-facing camera only, allows the phone to unlock and verify the user's identity by recognizing the face of the unit's owner. It also will calculate depth-of-field data so that dual cameras are not necessary for the "blur" effect created with the iPhone Portrait mode.

Today brings another rumor about the 2017 premium iPhone model, direct from Wall Street. Timothy Arcuri of Cowen & Co.shot out a note to clients today which was filled with some troubling news. Because Apple plans on eliminating buttons on the iPhone 8, allowing the screen to cover nearly the entire front of the handset, the company planned on embedding the Touch ID fingerprint scanner under the screen. While checking out the latest on the iPhone 8 supply chain, Arcuri discovered that the yield rate for Apple's own AuthenTec technology is very low. The analyst added in his note that Apple does not want to switch to an outside vendor.

"For the 5.8-inch OLED version, the biggest bottleneck remains integrating an under-glass fingerprint sensor into the display — the current yield rate of Apple's in-house AuthenTec solution remains low and AAPL seems unwilling to use other vendors' products."-Timothy Arcuri, analyst, Cowen & Co.

The analyst says that there are three solutions that Apple could choose from. It could decide to skip Touch ID totally and use only facial recognition to replace it. This choice, Arcuri notes, is unlikely. Apple could move Touch ID to the back, but feels that this would not be "user friendly." Lastly, Apple could unveil the iPhone 8 along with the new Apple iPhone 7s and Apple iPhone 7s Plus, but delay the release of the premium model until it straightens out the problem with the low yields.

Interestingly, there already have been rumors about a delay for the iPhone 8, so we can add this one to the pile. The previous speculation also came from a Wall Street analyst who said that despite the delay, the premium iPhone model would be available during the all-important holiday shopping season.

source: AppleInsider

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posted on 12 Apr 2017, 10:45

1. Arch_Fiend (Posts: 3367; Member since: 03 Oct 2015)

I though they weren't even going to do that, well I'm glad they are because I need Touch ID but I'm not glad they are having problems with it.

posted on 12 Apr 2017, 12:42 2

7. Well-Manicured-Man (Posts: 398; Member since: 16 Jun 2015)

I need Touch ID too. Not a fan of this facial recognition trend. I might be wrong but I think that the rumor was that Samsung moved the fingerprint sensor to the back of the S8 because they couldn't do the sensor beneath the screen either. Maybe Apple can use the additional 6 months they have to bring iPhone 8 to market to fix the issue.

posted on 12 Apr 2017, 12:52

8. Arch_Fiend (Posts: 3367; Member since: 03 Oct 2015)

I 100% agree man!

posted on 12 Apr 2017, 15:02 1

15. marorun (Posts: 5029; Member since: 30 Mar 2015)

Thats because both samsung and apple dont want to pay qualcomm thats already have the tech working lol.

posted on 12 Apr 2017, 15:47

17. kiko007 (Posts: 5217; Member since: 17 Feb 2016)

Qaulcomm has the patents. We have no idea whether or not it's practically applicable, outside the Mi5s, which wasn't wee received.

posted on 12 Apr 2017, 15:48 1

18. kiko007 (Posts: 5217; Member since: 17 Feb 2016)



posted on 12 Apr 2017, 16:05

19. LyannaStark (Posts: 87; Member since: 07 Apr 2017)

Well-Manicured-Man, if the rumors about the iPhone 8 are to be believed, the facial recognition that they'll roll out is going to be a lot more secure than Samsung's. I agree though, losing Touch ID in favor of smaller bezels is a disappointing idea.

The s8 and s8+ were going to have under screen fingerprint scanners as well, but Samsung wasn't able to get reliable results out of it. I bet it'll be similar w/ the iPhone 8.

posted on 13 Apr 2017, 04:36

23. JohanP (Posts: 37; Member since: 04 Apr 2017)

Agree with you

posted on 12 Apr 2017, 11:01 1

2. nctx77 (Posts: 2374; Member since: 03 Sep 2013)

Delay if you have to. My money will stay ready!!

posted on 12 Apr 2017, 12:33 2

6. willard12 (unregistered)

So, it's basically an iphone 7 with TouchID in the screen instead of a button.

That's fine by me. I hope what other manufacturers do is fine by you as you get ready to attack anyone who buys anything else with your idiotic "it's basically a..." comments. Your money for Apple stays as ready as your hypocrisy.

posted on 12 Apr 2017, 13:14

9. AlikMalix (unregistered)

It's a passive aggressive chain reaction... this should be studied by phsycologists.

posted on 12 Apr 2017, 11:04 2

3. AlikMalix (unregistered)

I rather delay it, but work properly. I can hold on to my 6s for another year if There's no touchb ID or any other feature I need on the next iPhone. Latest update made my 6s smoother and quicker than it was when I bought it.

I'd literally be buying a new device only for the new screen to body ratio trend that's been going on - been waiting for that.

posted on 12 Apr 2017, 11:15

4. jeroome86 (Posts: 2027; Member since: 12 Apr 2012)

At this point might just do 3 years on my 6s plus. Super smooth and great battery life.

posted on 12 Apr 2017, 11:59 2

5. Mreveryphone (Posts: 1268; Member since: 22 Apr 2014)

Delay until it's right... The note 8 will keep me very occupied...

posted on 12 Apr 2017, 13:22 1

10. p51d007 (Posts: 361; Member since: 24 Nov 2013)

"Flagship" guys do this every time. Come up with a goofy "jet black" or dual camera, or fancy touch sensor, THEN they say due to limited supply, the quantity available at launch will be restricted. Marketing 101...drives the fanboys nuts

posted on 12 Apr 2017, 13:32

11. Macready (Posts: 1475; Member since: 08 Dec 2014)

Sounds like the same issue Samsung had for the S8, hence they went for plan B, until the Note 8 or S9 gets it right.

posted on 12 Apr 2017, 14:06

12. surethom (Posts: 925; Member since: 04 Mar 2009)

Hopefully Samsung will. Move fingers print scanner back to found under glass's nest year not the super high weird place on the s8

posted on 12 Apr 2017, 14:20 1

13. Unordinary (unregistered)

Blablabla. One day reported Samsung will have low preorders, the next day "SAMSUNG PREORDERS HIGH!!" f**k analyst news articles

posted on 12 Apr 2017, 14:21

14. Mac_Highlander (Posts: 2; Member since: 12 Apr 2017)

I'm sure this is just fake, we already have this uo and running so i have no doubt that Apple has to

posted on 12 Apr 2017, 15:38 3

16. ShadowSnypa786 (Posts: 221; Member since: 06 Jan 2017)

"The analyst added in his note that Apple does not want to switch to an outside vendor"

LOL considering 80 or 90 percent of the devices components and innards are from outside vendors.

Good one

posted on 12 Apr 2017, 21:44 1

20. Chuck007 (Posts: 1302; Member since: 02 Mar 2014)

My bet is on this being a PR stunt to drive demand over the roof like iPhone releases of old, but if it isn't, good luck Apple. Without the 3D camera and the embedded touch ID though... it'll just be like a Galaxy S8 running iOS (aka nothing new). A disaster for the 10th anniversary iPhone IMHO.

posted on 12 Apr 2017, 22:23

21. arming (Posts: 64; Member since: 23 Jul 2016)

PA should stop using concept design which apple couldn't deliver . fault advertising or misleading consumer or click bait ? could PA explain why keep doing that ?

posted on 13 Apr 2017, 03:52

22. omnitech (Posts: 869; Member since: 28 Sep 2016)

Lol it's not coming this year. Do people really believe Apple will give up S model year money grabbing? And go from Bezelicious straight to bezeless? Not happening...

posted on 13 Apr 2017, 10:07

24. HomerS (Posts: 418; Member since: 19 Sep 2014)

Samsung had the same issue producing enough yield for a fingerscanner under glass for the S8 but had to go for plan B.
Hopefully Samsung has enough yield for the Note 8.

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