Apple may face iPhone shortages this fall due to manufacturing issues

According to a recent report, Apple’s latest iPhone Pro and Pro Max models could experience shortages this fall as the company grapples with manufacturing difficulties.

Apple and its suppliers have encountered challenges in implementing a “new manufacturing process” for the upcoming iPhone 15 Pro and Pro Max. This process aims to enable a larger screen display compared to previous smartphone models, as reported by The Information, citing information from two reliable sources familiar with the matter.

By utilizing the manufacturing process, Apple can produce iPhones with larger screens without increasing the overall size of the device. Unfortunately, one source disclosed that screens manufactured by LG Display did not pass reliability tests during the production phase.

These challenges might lead Apple to release the iPhone Pro 15 and Pro Max with a limited number of available units when they become available for sale to the public in September. As a result, finding the top-end models could be more difficult before the critical holiday season.

The report highlighted that the Pro Max has been particularly affected by the manufacturing issues, suggesting that there will be a more significant shortage of that specific model compared to others.

The iPhone Pro and Pro Max are the premium versions of Apple’s standard model smartphone. The latest iteration, the Pro 14, is priced at $999 on Apple’s website, which is $200 more expensive than the standard model.

According to sources, the latest version of the iPhone will include a USB-C port for charging, along with improved battery life and performance compared to previous editions.

As reported by The Information, a scarcity of the higher-priced iPhone models could potentially impact Apple’s profit margins.

Bank of America Global Research analyst Wamsi Mohan recently cautioned that initial channel checks indicate the debut of the iPhone 15 might be delayed by “a few weeks,” as reported in a note obtained by Barron’s.

Mohan’s projections indicate that Apple’s fourth-quarter revenue could be around $87.1 billion, which would fall below the consensus estimate of $91.6 billion. This potential revenue shortfall is attributed to the anticipated delay in the launch of the iPhone 15.

Production issues are not limited to the iPhone; other Apple products are also reportedly affected by similar challenges.

Recently, The Financial Times reported that Apple had to significantly reduce production targets for its highly anticipated Vision Pro mixed-reality headset. The reason behind this decision was the difficulty faced by suppliers in assembling these complex devices.

The Vision Pro is scheduled to be released in early 2024.

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