Low OLED Panel Yield Could Cap 'iPhone 8' Availability at 4 Million Units at Debut

[MacRumors]

Shipments of Apple's upcoming "iPhone 8" could be delayed because of low yield rates at assembly plants and a limited supply of OLED display panels, according to a report published on Tuesday.

DigiTimes cited industry sources predicting that the shipments could end up behind schedule because of the issues, despite chipset suppliers delivering parts early and an increased recruitment drive by companies in the assembly line.

iPhone 8 render by @VenyaGeskin1​

The latest speculation comes even though chipset suppliers have begun delivering related parts to the iPhone supply in the second quarter, and iPhone assemblers Foxconn Electronics, Pegatron and Wistron have been stepping up efforts to recruit more workers for their assembly lines in China, said the sources.

As covered previously on MacRumors, Samsung is the main supplier of display panels for Apple's 5.8-inch OLED iPhone, with Apple reportedly having ordered 70 million units from the company this year.

However, although Samsung Display has promised to fully support Apple with regards to the supply of OLED panels, DigiTimes' sources are now claiming only 3 to 4 million OLED-based iPhones will be ready for shipping before the new smartphones are unveiled at a product event slated for September.

Judging from the current supply of OLED panels, it will be difficult for Apple to ship up to 50-60 million OLED-based new iPhones in 2017, the sources indicated.

There have already been rumors suggesting the OLED iPhone will be in short supply when it launches, with the majority of the stock unavailable until later in the year, so today's report doesn't come out of the blue. However, the number of iPhones available at launch quoted by DigiTimes is the lowest we've seen so far.

Apple's so-called "iPhone 8" will be a radical redesign compared to previous handsets, with a glass body and edge-to-edge OLED display that includes an integrated Touch ID fingerprint sensor and a front-facing camera with 3D sensing capabilities, possibly for use with augmented reality software. The new iPhone is expected to be sold alongside upgraded (but standard) 4.7 and 5.5-inch iPhones.

Article Link: Low OLED Panel Yield Could Cap 'iPhone 8' Availability at 4 Million Units at Debut

 

[penajmz]

YIKES!!

Set your alarms now everybody.

 

[rudychidiac]

I don't want to imagine how expensive this iPhone will be in my country on launch...
I'm in Lebanon, and when a new iPhone is first released, the base model sells for $1200+, prices drop after Christmas.

 

[Paul Dawkins]

I say ********.

 

[Urban Joe]

Really having a hard time understanding why APPLE, yes APPLE...the company that constantly reminds us that they can do things nobody else can do... Why are we even talking about why Apple is going to basically fumble this launch? Apple can do better than this or at least they should do a better job at managing expectations directly...rather than through unconfirmed media leaks. I guess it's all about managing the stock price somehow

 

[Plutonius]

Really having a hard time understanding why APPLE, yes APPLE...the company that constantly reminds us that they can do things nobody else can do... Why are we even talking about why Apple is going to basically fumble this launch? Apple can do better than this or at least they should do a better job at managing expectations directly...rather than through unconfirmed media leaks. I guess it's all about managing the stock price somehow

I never believe any of the analyst reports I hear with regards to Apple and other tech companies. I believe the analyst are just trying to affect the stock prices both up and down.

 

[Billrey]

The reason is that nobody can produce enough high quality OLED displays.

It's not that Apple is incompetent, it's just that there aren't enough displays available, and nobody can ramp up fast enough with high enough yields. This has been the main issue with OLED for years. I always thought this was going to be a problem for the iPhone, and I believe that is the reason they are launching the iPhone 8/Pro at a higher tier.

Urban Joe: The reason

Really having a hard time understanding why APPLE, yes APPLE...the company that constantly reminds us that they can do things nobody else can do... Why are we even talking about why Apple is going to basically fumble this launch? Apple can do better than this or at least they should do a better job at managing expectations directly...rather than through unconfirmed media leaks. I guess it's all about managing the stock price somehow

 

[thekeyring]

Where are the iPhone 7S leaks?

 

[Sunny1990]

There have already been rumors suggesting the OLED iPhone will be in short supply when it launches :- Macrumors Quote

Every year. This article is the same every year.
we hear this every year and the iPhone is released at the normal schedule.

 

[MistrSynistr]

Apple has more money than God and can't make sure the correct amount of OLED's are made? LOL

 

[Danoc]

This launch will be epic. It will be probably supply constrained for easily 6 months.

 

[NewtonPippin]

The bright side is it gives us a good opportunity to buy a ton of units right when pre-orders open, then sell them on Ebay for a profit!

 

[OldSchoolMacGuy]

Every single iPhone release for years has claimed production delays and supply shortages and yet we haven't ever seen it really happen.

It seems some think that production can't be ramped up and additional suppliers cannot be found. Those reporting on these things live in a dream world rather than reality.

 

[JohnApples]

The bright side is it gives us a good opportunity to buy a ton of units right when pre-orders open, then sell them on Ebay for a profit!

Hey, if all the rumors are true and this is a "super cycle" (lol), high-priced, low-supply iPhone... I would totally try to snag one or two and sell it for ridiculous profit to the impatient.

 

[mrklaw]

The reason is that nobody can produce enough high quality OLED displays.

It's not that Apple is incompetent, it's just that there aren't enough displays available, and nobody can ramp up fast enough with high enough yields. This has been the main issue with OLED for years. I always thought this was going to be a problem for the iPhone, and I believe that is the reason they are launching the iPhone 8/Pro at a higher tier.

Urban Joe: The reason

assuming its a 1080p screen or thereabouts (similar ppi as current iphones), whats the big deal? Aren't other phones already using OLED including higher resolution than iphone?

If I put my foil hat on, I might imagine Apple leaks some of this nonsense on purpose to make everything appear more magical when they actually deliver and to bolster day one preorders to help share prices - its just an OLED screen, it isn't fairy dust.

 

[Zirel]

I don’t believe this “rumor”.

Apple is not dumb and if they can’t make them fast enough, they aren’t losing money, they wouldn’t release it, and people would buy what they have anyway.

This is just to throw bad news for AAPL, now that GOOG has a real $2.7 billion dollar fine to pay in the EU.

 

[grobik]

There have already been rumors suggesting the OLED iPhone will be in short supply when it launches :- Macrumors Quote

Every year. This article is the same every year.
we hear this every year and the iPhone is released at the normal schedule.

It’s a strategy. They are in a position that they don’t have to meet demand, not going to hurt sales one bit. But by making a small batch upfront, they can monitor sales and manufacture accordingly. Keeps cost down as they are not sitting on extra stock ever. It’s also a way they can add exclusivity to a product that is manufactured by the millions.

 

[Col4bin]

Wait for the iPhone 8S.

 

[Pakaku]

Surely after the tenth iPhone generation they would figure out their own supply by now?

 

[philmore13]

In other news.... water is wet.

 

[69Mustang]

Where are the iPhone 7S leaks?

No one in the "leak business" <-- is that a thing?--= cares about the 7S. If rumor holds true it will look just like the 7. The thought being, if you've seen the 7, you've seen the 7S. Not a knock, but if you've seen the iP6 you've seen the 7S. The iP8 has the mindshare.

 

[Rocketman]

Apple has more money than God and can't make sure the correct amount of OLED's are made? LOL

It is dependent on Samsung for this part and absolutely insists on the absolute bleeding edge specs for the part.

 

[iZac]

If true, perhaps it relates to complications with the cutting of the panels, with that little notch?

The 'Essential' phone will probably be fine because it's not going to ship in such massive volumes.

 

[DotCom2]

Every single iPhone release for years has claimed production delays and supply shortages and yet we haven't ever seen it really happen.

It seems some think that production can't be ramped up and additional suppliers cannot be found. Those reporting on these things live in a dream world rather than reality.

Same ****...different iPhone cycle.

 

[JerseyBiker]

That picture looks a lot like my Galaxy S8.