iPhone 7 Facing Supply Chain Shortages
The new iPhone 7 was announced on September 7th. While we could discuss how we felt about the updates to the company’s most popular device, what’s actually interesting is the fact that Apple could be facing supply shortages when the product officially becomes available on September 16th.
Apple’s part suppliers, the companies that build things like the speakers, cameras, and processing chips, are reporting smaller orders. Apple is intentionally cutting back on it’s orders about 20% year over year. There has been an overall drop in iPhone orders, with customers diversifying brand purchases, focusing on other products, or simply hanging on to older technology longer. Apple has also reportedly been pressuring suppliers to increase profit margins on components.
Components are also simply in shorter supply, with vaguely cited “faulty components” in play. The supply and demand circus that always surrounds a new iPhone release could be even bigger this year as Apple may simply not be able to provide as many devices up front as customers may demand.
As production ramps up ahead of the release, shortages will be felt in all parts of Apple’s supply chain, but it will be interesting to see how sales are affected both by Apple ordering smaller and having that smaller order perhaps have delays.
