Apple could face iPhone shortages this fall due to manufacturing issues: report
Apple’s highly anticipated iPhone Pro and Pro Max models could face limited availability this fall due to manufacturing challenges, according to a report from The Information. The upcoming iPhone 15 Pro and Pro Max models will feature a larger screen display without increasing the overall size of the device, thanks to a new manufacturing process. However, issues with this process have been encountered by both Apple and its suppliers. LG Display’s screens have reportedly failed reliability tests during production, leading to potential shortages and a more severe shortage for the Pro Max model. These manufacturing struggles could impact Apple’s profit margins, as the higher-priced devices may be in shorter supply than anticipated.
The iPhone Pro and Pro Max serve as the premium versions of Apple’s base model smartphone, with the Pro 14 starting at $999, $200 more expensive than the standard model. The upcoming versions are expected to feature a USB-C port for charging and improved battery life and performance. Any shortage of these higher-priced devices could have an impact on Apple’s revenue.
Earlier this week, Bank of America Global Research analyst Wamsi Mohan warned that the debut of the iPhone 15 could be delayed by a few weeks, potentially affecting Apple’s fourth-quarter revenue. Mohan projected revenue of $87.1 billion, falling short of the consensus estimate of $91.6 billion, due to the possible delay.
Apple has not yet responded to requests for comment on the report. It is worth noting that the iPhone is not the only Apple product facing production challenges. The Financial Times recently reported that Apple had to make significant production cuts for its Vision Pro mixed-reality headset, set to be released in early 2024, as suppliers grappled with assembling the complex devices.
FAQs:
Q: What issues are Apple facing with the manufacturing process?
A: Apple and its suppliers are encountering difficulties in implementing a new manufacturing process that would allow the upcoming iPhone 15 Pro and Pro Max models to have larger screens without increasing the overall size of the devices. Screens made by LG Display have failed reliability tests during production.
Q: When are the iPhone 15 Pro and Pro Max models set to be released?
A: The iPhone 15 Pro and Pro Max are expected to go on sale to the public in September.
Q: How could the manufacturing issues impact availability?
A: The manufacturing issues may result in fewer available units of the iPhone Pro 15 and Pro Max than expected, causing potential shortages and making the top-end models more challenging to find ahead of the holiday season.
Q: Could the manufacturing challenges affect Apple’s profit margins?
A: Yes, the shortage of higher-priced iPhone Pro and Pro Max models may impact Apple’s profit margins.
Q: Is the iPhone the only Apple product facing production issues?
A: No, Apple’s Vision Pro mixed-reality headset also encountered production challenges. The company had to make significant cuts to production targets for the complex devices, set to be released in early 2024.
Report: Manufacturing issues could lead to iPhone shortages for Apple this fall
Apple’s highly anticipated iPhone Pro and Pro Max models may face shortages this fall due to manufacturing difficulties, according to a report on Thursday. Apple and its suppliers have encountered challenges in implementing a new manufacturing process that allows for larger screen displays in the upcoming iPhone 15 Pro and Pro Max models. This process allows Apple to increase screen size without altering the overall size of the devices. Sources revealed that LG Display has experienced reliability issues with screens during production. These manufacturing setbacks could result in Apple releasing fewer units of the iPhone Pro 15 and Pro Max than expected in September, potentially making these high-end models harder to find during the crucial holiday season. The report suggests that the Pro Max model will face a more severe shortage than the Pro model. The Pro and Pro Max are premium versions of Apple’s base model smartphone, with the latest version, the Pro 14, priced at $999. The upcoming models will feature a USB-C port for charging, improved battery life, and better performance compared to previous editions. Any shortage of the higher-priced devices could impact Apple’s profit margins. Earlier this week, a Bank of America Global Research analyst warned of a potential delay in the iPhone 15’s debut by a few weeks, which could result in Apple’s fourth-quarter revenue falling short of expectations. Apple has not yet commented on the report. Production difficulties have not been limited to iPhones, as Apple reportedly had to make significant cuts to production targets for its Vision Pro mixed-reality headset due to supplier struggles in assembling the complex devices. The Vision Pro is slated for release in early 2024.