It Would Take an Act of God for Apple Inc. (AAPL) to Miss iPhone 7 Release Date

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Apple Inc. may be facing serious iPhone 7 supply issues due to a recent earthquake in Taiwan. Apple has become expert at managing supplier delays but there’s only so much they can do in this case.

Will Apple replace TSMC with Samsung?

Digitimes reported that the 6.4 magnitude earthquake has done massive damage to TSMC manufacturing facilities, which is one of Apple’s Ax processor suppliers, and will reportedly be the sole supplier of the iPhone 7’s A10 chips.

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Initially, TSMC indicated that only 1% decrease will be seen in the production in 2016 due to the earthquake, but after a closer inspection of the damages, the supplier has indicated that the impact will be higher than what was first anticipated.

“…….but on February 12 indicated that the decrease in wafer shipments will be more than 1%, because damage to Fab 14 is worse than originally assessed,” Digitimes report read.

Apple Inc. iPhone sales are expected to decline for the first time in history in 2016, and this has raised the pressure on the US firm for delivering a homerun with the iPhone 7. The A10 supply issues could lead to bottleneck with the iPhone production, and it will be interesting to see, if Apple might tap Samsung to fill the gap. Reportedly, Apple is impressed with TSMC’s 10-nm manufacturing process. So, it will be hard for the iPhone firm to switch suppliers.

Apple will reveal smaller iPhone at the March event

Separately, a new report states that Apple will release the iPhone 5se and the new iPad Air 3 on March 18. This means that the firm will release the phone three days after the expected launch date at an Apple event on 15 March. There is usually a time gap of a week between the launch and release dates of Apple phones, but it seems that the firm is all set to break this tradition with the launch of new devices almost instantly.

According to a report in 9to5 Mac, Apple Inc. has been working hard since January to get the devices ready. It is expected that the smaller case will feature an external with design very similar to the iPhone 5s. It is believed that Apple is trying to encourage people, who wish to have the smaller sized phone, to upgrade to the latest technologies with its new, smaller phone.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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