Apple Inc. (NASDAQ:AAPL) may not be able to get its iPhone 7 released as expected because one of the company’s suppliers, its chief rival Samsung, is apparently unable to meet the order for the company’s next generation of mobile processors. Manufacturing yields at Samsung partner Global Foundries are apparently around 30%, at least according to one analyst with inside knowledge of the company’s supply chain.
Ming Chi Kuo, of KGI Securities is known for is deep knowledge of circumstances in the manufacturing base of the Apple empire. According to him Apple had to make a last minute decision to include TSMC in its order for the iPhone 7 A9 chip after it became clear that Samsung was not up to the challenge. The release of the the iPhone 7 may be in doubt as a result.
iPhone 7 release may be delayed
After the delay in shipping that has affected the Apple Watch, it’s clear that the Cupertino company doesn’t have divine powers when it comes to allocating production for its devices. The iPhone 7 is following up an old product category, however, so supply constraints could be assumed to be less.
The Samsung mess means that a delay could occur, however, if not to the company’s planned release date then to its fulfillment of orders. Apparently Samsung was unable to make the A9 processor in a high enough number in order to meet demand for the iPhone 7.
Ming Chi Kuo was the same analyst that revealed that Apple would release an iPhone 7 instead of its usual iteration generation, presumed to be the iPhone 6s. The iPhone 7 will be branded as such, according to Mung, because of the massive changes that Apple is going to make in the smart phone. According to the analyst the iPhone 7 will contain the Force Touch technology already present in the Apple Watch.
iPhone 7 delays are frustrating success
iPhone 7 release date delays or shipping delays are likely to happen because of the intense success of Apple Inc. (NASDAQ:AAPL). No other company has to ship 70 million devices in a quarter, so no other company has ever run into the kind of manufacturing problems that Apple will have deal with on the iPhone 7.
iPhone 7 rumors should take the Samsung delay into account, but maybe Apple will be able to sidestep the problems and deliver the iPhone 7 on time after all.