Dive Brief:
- Apple's next iPhone release, called the iPhone X, will likely face demand shortages, as suppliers are only able to build 10,000 iPhone X units per day, according to KGI Securities analyst Ming-Chi Kuo, CNBC reported. The X is therefore likely to be in short supply for some time.
- The slow production is likely caused by a shortage of OLED panels, which are in great demand at present.
- Of the three color choices — black, silver, and blush gold — gold is expected to be in particularly short supply, and could potentially be released late.
Dive Insight:
Warnings about potential delays have plagued Apple's release schedule for months will finally come to fruition next week.
As long ago as April, rumors began to circulate concerning the release of the new OLED screen, citing supplier Samsung Display's need to serve both its parent company as well as Apple. Though Samsung Display and the phone producing branch of the company operate separately, competing demands do exist for suppliers, especially when they're working with a market challenger. At this time, Apple is limited to a single supplier, since OLED technology is dominated by Samsung.
Yet, reports indicate Apple is working to develop its own OLED production source in order to mitigate its reliance on a sole supplier, who also happens to be a competitor. Having purchased its own chemical vapor deposition (CVD) machines, the company is in the process of locating a manufacturer willing to work on Apple-owned equipment in order to manage more of its own supply chain, according to 9T05 Mac.
Apple's supply issues with the iPhone X are unsurprising considering the problems had long been reported with regards to its iPhone 8. However, this week's revelation that Apple would release both the iPhone X and iPhone 8 points to a reason why its supplier's capacity is constrained, in the first place.
