We have come across various reports proposing that Apple is having significant barriers to development and production of the upcoming Phone. A WSJ report proposed that Foxconn is trying to hire extra staff to make up time, but a separate TechCrunch one cited ‘trusted sources’ in affirming that shipping will be significantly delayed.
Today, a new report suggests that analysts and investors are now beginning to question Apple’s own guidance for the current quarter …
Apple’s guidance estimates for total revenue in the $49-52B range in the present quarter, closing on September 30. Normally, this quarter would profit from a large part of opening weekend sales from the latest iPhone handsets, but this has now been called into doubt by the reported delays.
Today’s WSJ report suggests that analysts are now likely to downgrade their sales projections not just for this quarter, but also for the key holiday quarter when Apple normally experiences its powerful sales.
“New iPhones typically are in short supply when first released. But if shortages of the new phone extend beyond the initial sales period, which is expected to begin Sept. 22, analysts and investors could dial back their projections for sales in the crucial holiday period.”
Apple doesn’t like to take any risks with its guidance, so dropping the bottom end of the projected range would be embarrassing.
Two specific issues are said to have troubled the new iPhone, one at the development stage, one during production.
Apple allegedly strived for some time to embed Touch ID into the display before dropping it in favour of face recognition tech. And once production started, OLED yield rates were said to be as low as 60%. Although Samsung Display, which is making the panels, has a lot of experience of making OLED screens for its own devices, the design of the iPhone display is said to be more complicated.
At the current stage, it’s uncertain whether Apple will ship any of the new iPhones in September, though pre-orders are expected to go live not long after next week’s keynote.