iPhone 8 Delay Caused By Supply Chain Says RBC Capital

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According to an investor note, released by RBC Capital this week. Apple fans waiting to get their hands on an iPhone 8 may face a longer expected wait. While this may not be new, it does indicate, is that previous reports of an iPhone 8 delay were correct. Here’s what you need to know..

iPhone 8 Delay

It has been widely rumored that Apple will announce three new smartphone models this coming September. It’s thought they will be the iPhone 7s, iPhone 7s Plus and the 10th-Anniversarry iPhone 8. About the delay, Apple is still expected to launch in September, but, the iPhone 8 delay is caused to supply chain issues relating to its OLED display.

According to industry insiders, who have helped the likes of RBS Capital to understand the situation. The production of OLED panels has taken longer than expected to ramp up. As such, this is expected to cause a severe shortage of the next flagship model, maybe even push back the launch.

What’s Causing The Problem?

Apparently, Apple has run into problems embedding it’s Home Button functionality into the OLED panel. This issue is similar to the one Samsung faced and ultimately ditched for the Galaxy S8‘s. However, considering that Apple’s supplier is the South Korean Giant, it appears not much progress has been made to resolve it. In fact, according to the RBC Capital note, production has been delayed by several months.

The note itself reads as follows:

“Multiple supply chain data points continue to point towards a delayed OLED production ramp, with likely shift by ~1-2 months for volume OLED production,” RBC said. “Hence, while we still think all three models launch simultaneously in September, the OLED model will see limited availability. It could, in fact, be delayed availability till mid-October/November timeframe.”

Limited Availability

So, while a consensus between the likes of RBC Capital and Morgan Stanely have not been reached on this matter. With Stanely, suggesting it has seen no indication of an iPhone 8 delay. We’re going with what seems to be a growing majority of Analysts and insiders. Those who are suggesting that while the next flagship will launch in September, it won’t be readily available until October/November.

What could this mean for sales?

Fortunately for Apple, it has an extremely loyal fanbase, so it’s possible that while early sales are sluggish. Overall, sales will not be affected by an iPhone 8 delay.

On this matter, RBC Capital said:

“We think a shift in OLED production by 1-2 months doesn’t change the demand dynamics for iPhones. Overall, they have a fairly captive demand, it won’t undermine the positive iPhone upgrade cycle narrative.”

However, RBC has indicated that it will cut its 4th quarter iPhone sales predictions by 2.5-million handsets. Although, it does expect sales figures for the 1st quarter of 2018 to be high for all three new models.

Final Thoughts

With an iPhone 8 delay, comes the inevitable backlog of pre-orders, so while Apple struggles to keep up with demand. You could practically expect the iPhone 8 delay to stretch on further than most realize.

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