“Apple Inc.’s new iPhone, which is expected to be unveiled Tuesday, was plagued by production glitches early in the manufacturing process this summer, according to people familiar with the situation, which could result in extended supply shortfalls and shipping delays when customers start ordering the device later this month,” Yoko Kubota, Tripp Mickle, and Takashi Mochizuki report for The Wall Street Journal. “New iPhones are typically in short supply when first released. But if shortfalls of the new phone extend beyond the initial sales period, which is expected to begin September 22, they could weaken analysts’ and investors’ projections for sales in the crucial holiday period.”
“The production glitches led to a setback of about a month in the manufacturing timetable,” Kubota, Mickle, and Mochizuki report. “There are big expectations for the new iPhone, informally dubbed the iPhone 8 or iPhone X by industry watchers. Investors, betting the new phone will rejuvenate Apple’s sales after a recent slump, have pushed Apple’s share price to record highs in recent months.”
Kubota, Mickle, and Mochizuki report, “The new device is expected to have a base price near $1,000 — a significant premium over existing models — in part because of more expensive components.”
MacDailyNews Take: Again, we paid US$969, before taxes, for our 256GB Jet Black iPhone 7 Plus units last year, so, no, it’s not “a significant premium over existing models.”
“The production delays earlier this summer stemmed from Apple’s decision to build new phones using organic light-emitting diode (OLED) screens,” Kubota, Mickle, and Mochizuki report. “The display modules are being produced in Vietnam by an affiliate of Samsung Electronics. Unlike the OLED display module in Samsung’s own smartphones, in which the display and touch panel are integrated, iPhone’s display module has the touch panel outside of the display, according to a person familiar with the technology. The iPhone manufacturing process requires more steps and more layers of adhesive and protective film than are involved in Samsung’s manufacturing process, the person familiar with the process said, creating a greater risk of manufacturing error.”
Read more in the full article here.
MacDailyNews Take: The scarcity will make the iPhone, with its premium OLED display, even more desirable.