Apple may not have enough stocks of iPhone 7 at launch

The launch of every new generation of iPhone typically causes several issues for Apple and this year is no different. Nikkei Asian Review reports that there could be supply shortages of the iPhone 7 at launch due to faulty components and low yield rates.

An industry source reportedly said that Apple has yet to resolve defects in the waterproof speaker and dual-camera module. In addition, some suppliers are still trying to improve yield rates of their components. An analyst at Yuanta Investment Consulting has also lowered his forecast for the iPhone production for the rest of the year.

“We estimate total iPhone 7 builds to be 74 (million) in 2H16F, 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,” Pu wrote in a note dated Aug. 23.

Apple could face a double whammy when it launches the iPhone 7 next month. Sluggish sales of the iPhone 6s and 6s Plus have forced Apple to cut production and component orders this year, which means Apple could sell fewer iPhone 7 this year compared to last year.