Instant Alert: There might not be enough iPhone 7 units at launch

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There might not be enough iPhone 7 units at launch

by Kif Leswing on Aug 26, 2016, 1:33 PM

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The iPhone 7 is coming out next month. But it might be difficult to buy one immediately after it comes out. 

Apple is facing a supply shortage of its still unreleased device, Nikkei reported on Friday. The problem is certain components are proving trickier to make than expected. 

In particular, Apple's suppliers are having trouble making enough of the double-camera module expected to be used on the larger 5.5-inch iPhone and a new waterproof speaker part used on both models. 

"If Apple sticks to its launch schedule from last year, there may not be enough supply at the beginning, as some suppliers are still trying to fix low yield rates of their components," an industry source tells Nikkei

Earlier this week, Credit Suisse analysts said in a research note that Apple planned to make more of the bigger iPhone 7 than it had for the iPhone 6 and 6S, but there were possible issues with the double-camera production process. 

Perhaps the bigger question for Apple, though, is whether demand will remain high. 

Apple's iPhone sales have dropped on an annual basis for the past two quarters, and the new model is expected to be pretty similar to the iPhone 6S, which has had lackluster sales for Apple's standards. 

Apple CEO Tim Cook's background is in the supply chain, so you can expect the company to adapt. Nikkei's sources in the supply chain think that Apple's orders may be down 15% this year. 

Regardless, if you want an iPhone on the first day they're available, you might want to consider lining up or pre-ordering as soon as Apple's page goes live.

SEE ALSO: Get ready — here's when the iPhone 7 will probably come out


 
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