Apple iPhone 7 and iPhone 7 Plus could be in short supply at launch

Apple iPhone 7 and iPhone 7 Plus could be in short supply at launch
A new report published today states that the combination of conservative ordering by Apple and issues obtaining enough parts, will result in a shortage of iPhone 7 and iPhone 7 Plus handsets when the phone is launched next month. The waterproof speaker and the dual camera component are both said to be in short supply. Word of this component shortage comes out of Asia where Apple sources many of the parts used on its handsets.

The reliable Nikkei Asian Review said that the shortage of components like the speaker and dual camera module are the results of low yields. The new iPhone models will be the first to offer a waterproof build. The Apple iPhone 7 Plus will be Apple's first handset to sport a dual camera setup. The issue with these two parts has yet to be completely solved, according to Yuanta Investment Consulting analyst Jeff Pu. Pu told clients that he is cutting his estimate of iPhone production (including all models) from July to December of this year to 114 million from his previous estimate of 120 million units.

The analyst also expects Apple to build 74 million iPhone 7 units in the second half of this year, which would be a decline from the 84 million Apple iPhone 6s units built during the same time one year ago. That dovetails with an earlier report that Apple ordered 72 million to 78 million iPhone 7 units for this year.

However, the Nikkei Asian Review says that Apple has ordered 15% fewer chipsets than the amount it ordered last year, while orders for panels are said to be down 20% year-over-year. Another major iPhone supplier received orders for only 54 million components for the new phones and a different supplier says that Apple has ordered parts conservatively this year.


According to tipster Evan Blass, Apple will launch the 2016 iPhone models on September 16th.

source: NikkeiAsianReview via BGR

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44 Comments

1. Fona13A unregistered

Brilliant Move.

3. Finalflash

Posts: 4063; Member since: Jul 23, 2013

I know right. So typical Apple, with a head start in excuses but not components. But in all seriousness, it is likely that internal Apple projections are probably low for the sales and so they ordered fewer components as stated in the article. The pro Apple press has likely added in the "component shortage" excuse to try to calm jittery investors and fanboys. I mean how can you have a component shortage while you are ordering conservatively? Also, waterproof speakers are in short supply? WHAT? The camera module is in short supply.....you mean the same one they've been using since last year (because it most likely is)?

6. sgodsell

Posts: 6897; Member since: Mar 16, 2013

For devices that will have hardly any changes this year. So it makes sense for Apple to decrease it's numbers. Also they are being cautious since Apple has already seen two decreases in sales. This should be the kick in the pants that most companies would use to stir things up, but Apple lately has been resting on their Laurels.

8. marorun

Posts: 5029; Member since: Mar 30, 2015

always same thing every year. make up excuse so they can overhype the phone and make it feel like if you dont preorder now its gonna take months to receive it. what a load of crap.

25. PHYCLOPSH

Posts: 641; Member since: Jun 28, 2014

This is actually great news... For Apple! Since most of their consumers won't be buying the iPhone 7 anyway in lieu of the 8, Apple is actually saving itself the embarrassment of building too many of them - while at the same time they are further able to inflate price for the poor souls they're hoping to offload them to.

40. bobby84

Posts: 595; Member since: May 13, 2016

Unless they go to Samsung first and see what they've been missing im sure Everyone(Sony, HTC, One Plus, Samsung etc) will try to convert them over before the new release in 2017.

42. PHYCLOPSH

Posts: 641; Member since: Jun 28, 2014

Yes, this also goes without saying. Without an intervention I foresee iOS marketshare slipping south of 12% by that time.

43. yyzamin

Posts: 379; Member since: Aug 26, 2015

Like they have been trying to do over the last 5 years?

2. Unordinary unregistered

Not too hyped about the dual camera..

7. Creep

Posts: 193; Member since: Apr 05, 2016

Not too hyped about the iPhone period. Solid device but so boring.

4. SIGPRO

Posts: 2810; Member since: Oct 03, 2012

People fall for it over and over again!

5. EC112987

Posts: 1213; Member since: Nov 10, 2014

If all the rumors are true I'll be passing up on this years model. My s plus is still running pretty well.

9. Mrmark

Posts: 373; Member since: Jan 26, 2013

Same news every year .....1. Analysis say not going to sale well 2. Short Supplies 3. Best iPhone ever.

11. FrequencyBender

Posts: 18; Member since: Feb 26, 2015

This is so true.

44. steodoreben

Posts: 379; Member since: Sep 26, 2013

I agree with you. Apple, PA and paid analysts use this as a bait to lure fans. Nice strategy. Shortage? How come they sold millions in a week last year?

10. CreeDiddy

Posts: 2128; Member since: Nov 04, 2011

Bottom line it's best to order when needed. That has been Apple's philosophy. It gives the illusion that there is high demand if back orders exist.

12. rsiders

Posts: 1889; Member since: Nov 17, 2011

This is awesome news. Everybody go into a panic.

13. AlikMalix unregistered

All of you trolls saying that Apple is making less phones to crate fake demand, how do you explain that Apple has prepped more phones for launch (by millions more) every concecutive year and still ended up selling out? It's not like they made couple thousand? As far as news went they ordered 70-80 million for the launch. All that even after it is projected that his year iPhones won't sell that well. You're a buncha irritating haters. Nothing more.

18. sgodsell

Posts: 6897; Member since: Mar 16, 2013

Is the truth trolling. It's a known fact that sales for Apple has decreased in the last two quarters. Yet for the same two quarters Android sales have increased. From all the leaks it looks like Apple hasn't changed much since the iPhone 6s. A little more battery, a missing 3.5mm jack, a upgraded processor to push once again the lowest resolution flagship device at a flagship price. Yeah, okay Apple at its best once again more concerned about profits instead of giving the consumers the best tech.

26. AlikMalix unregistered

I know the sales are lower this quarter. Did you read my post - it's the stupid notion that Apple specifically prepares less phones to hype demand when it's complete opposite - they prepare more phones by millions every next consecutive year - and still manage to sell out. They're not making less phones than before to create fake demand - they make more than last year and the demand is still stong with many still waiting or delayed after launch to get one.

29. Subie

Posts: 2302; Member since: Aug 01, 2015

I agree with you Alik. The way I read the article is not that Apple deliberately ordered less, but that due to supplier issues there may be less available then Apple intended. In the end though most people that want one at launch will probably be able to find one for sale somewhere.

34. therealestmc

Posts: 679; Member since: Jul 23, 2012

And yet only two companies are making money, with Apple being on top.

33. Deelron

Posts: 22; Member since: Aug 22, 2016

Android is not a phone vendor. All companies should be primarily concerned about profits (particularly long term), most notibly when two companies are taking nearly all of it. This article (shortage of components for new iPhone at release) appears every year, regardless of how great or merely good Apple is performing.

14. kiko007

Posts: 7491; Member since: Feb 17, 2016

Why the f**k are the same idiots the first to post on every Apple article? Seriously PA, I don't know what you call "moderation", but shouldn't you prioritize keeping the same troglodytes from flame baiting every article? I just want go read the article, scroll to the comments, and see an actual discussion about the phone. Not " Oh muh God......stupid sheeps r gonna buy it anyways!" posts from hipster jocks. It's high time you engaged in some actual disciplinary tactics rather than sitting ideally by trying to generate clicks.

16. sgodsell

Posts: 6897; Member since: Mar 16, 2013

You act like you are hurt. Well get over it. Besides I have seen both you and AlikMalix be the first to post on Android articles with your negative posts towards Android or Google all the time. Also there is a lot of truth to what the vast majority have said so far. Especially when there is no denying the facts so far. Like the two previous quarter sales declines of iPhones. Yet in the same timeframe Android has seen an increase. Not to mention with all the leaks in regards to the new iPhones, not much is changing. So it makes sense for Apple to decrease their production. Does it not? Tim and friends should not be concerned with profits so much, and instead try to give the consumers the best tech instead. Clearly Apple hasn't been doing that.

17. kiko007

Posts: 7491; Member since: Feb 17, 2016

Uh-huh that's nice, now go back to your cell innmate #24478.......no one cares about your opinion.

21. sgodsell

Posts: 6897; Member since: Mar 16, 2013

Clearly you care enough to respond. I tell you what if you give me an address, then I could send you a tube of preparation H. I hear it works wonders on sore butts.

23. kiko007

Posts: 7491; Member since: Feb 17, 2016

I assume Apple sent you that Preparation H to begin with?

35. AlikMalix unregistered

First to post a negative post on android articles? Links? I do post negative things that pertain android or android devices but that's after I was Called a sheep to prove that android has problems that I don't want to deal with or features that I dont like or features that android doesn't have.

27. lyndon420

Posts: 6518; Member since: Jul 11, 2012

Rather than complain about poor commentary, why don't you just start an interesting topic / debate instead of adding stress and insults to the mess?

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