iPhone 8’s Popularity Will Cause Major Problem to Apple’s Supply Chain

From the looks of it, Apple is going to make record sales once it decides to launch iPhone 8. In fact, I think it’s safe to say that iPhone 8 is one of this year’s most anticipated smartphones and that Apple fans are more than enthusiastic to pre-order it. The reason why the entire world is buzzing with excitement in anticipation for iPhone 8 to come out is because Apple promised that this smartphone is going to be way different from what we’re used to seeing from the usual iPhone lineup.

Last year, Apple received a lot of criticism from its fans for not making any new design changes and for sticking with the same pattern on iPhone 7. Apple listened to that feedback and announced that iPhone 8 will be revolutionary. In addition, Apple also celebrates ten years since Steve Jobs launched the first iPhone 8 and the Cupertino based tech giant needs to commemorate this moment. However, things might not turn out as Apple is planning because according to Apple insider KGI Securities’ Ming-Chi Kuo, Apple is going to face some supply chain problems.

OLED Display Supply Chain

As everyone probably already knows, one of the most important things that iPhone 8 is going to feature is an enlarged OLED display. Departing from the traditional LED display is a good decision from Apple but there is a big supply problem with this. Regarding this issue, the KGI Analyst stated the following: “The OLED version will be in short supply as we forecast shipments in 3Q17 will be 2-4 million units or less. We do not thing production of the OLED iPhone will pick up substantially before 4Q17; and given strong demand, tight supply may persist until 1Q18 before improving much”. In short, what the analyst is trying to say is that Apple always makes record sales and that this time, Apple might not have the necessary supply power to ramp up production.

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