Apple could face iPhone shortages this fall due to manufacturing issues: report


The latest versions of Apple’s iPhone Pro and Pro Max models could be in short supply this fall as the tech giant contends with manufacturing woes, according to a report Thursday.

Apple and its suppliers have reportedly faced issues with implementing a “new manufacturing process” that will allow it’s upcoming iPhone 15 Pro and Pro Max to have a larger screen display than previous models of the smartphone, The Information reported, citing two sources with knowledge of the situation.

The manufacturing process allows Apple to create iPhones with larger screens without making the device itself bigger. One source told the outlet that screens made by LG Display have failed reliability tests during production.

The issues could force Apple to roll out its iPhone Pro 15 and Pro Max with fewer available units than expected when they go on sale to the public in September – potentially making the top-end models more difficult to find ahead of the crucial holiday season.

The report said the manufacturing issues have especially hampered the Pro Max, indicating “there will be a more severe shortage” of that model.

Apple’s iPhone Pros have higher margins than the base model.
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The iPhone Pro and Pro Max are the premium version of Apple’s base model smartphone. The most recent version, the Pro 14, starts at $999 on Apple’s website — $200 more expensive than the standard model.

The latest version will feature a USB-C port for charging as well as enhanced battery life and performance relative to past editions, sources told the outlet.

As The Information noted, any shortage of the higher-priced devices could cut into Apple’s profit margins.

The premium iPhone models could be in shorter supply than expected this fall.
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Earlier this week, Bank of America Global Research analyst Wamsi Mohan warned that early channel checks suggested the iPhone 15’s debut could be delayed by “a few weeks,” according to a note obtained by Barron’s.

Mohan projected Apple’s fourth-quarter revenue would come in at $87.1 billion, falling short of a consensus estimate of $91.6 billion, due to the potential delay.

Apple did not immediately respond to The Post’s request for comment on the report.

The iPhone 15 Pro is set for release in September.
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The iPhone isn’t the only Apple product reportedly hampered by production issues.

Earlier this month, The Financial Times reported that Apple had to “make drastic cuts” to production targets for its much-hyped Vision Pro mixed-reality headset as its suppliers struggled to assemble the complex devices.

The Vision Pro is set to hit the market in early 2024.

Source by [New York Post]

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