Apple iPhone 7 might face supply shortage ahead of launch, indicate industry sources

Apple might face shortage of supply shortage of the yet to be released iPhone 7, claims a new report. It seems component manufacturers are struggling to produce enough parts in time for the launch, which is rumoured to be next month.

"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 told the Nikkei Asian Review.

Jeff Pu, an analyst at Yuanta Investment Consulting says," We estimate total iPhone 7 builds to be 74 million in 2H16, compared to 84 million for iPhone 6s in 2H15. Together with pricing pressure, we expect most Apple food chain suppliers to see (year-on-year) revenue decline for the rest of the year."

A yield rate typically measures the number of saleable units a manufacturer can churn out at the end of the production process. If yields are low it could mean higher costs for manufacturers or failure to deliver the demanded volume of devices to consumers on time.

Although Apple expects the demand for the iPhone 7 to be much lower compared to the iPhone 6 series, in case of a supply short fall customers may be swayed into compromising for other premium devices causing both Apple and its manufacturing partners great revenue decline. There has been no official announcement by the company but it is highly anticipated that the iPhone 7 will be unveiled during the first or second week of September in a grand event.