iPhone 8 Release Date Delayed? Production Issues Could Postpone Apple's New iPhone, Report Says

An Apple analyst said Apple’s iPhone 8 will be delayed during shipping and won’t start production until the first quarter of 2018, according to a report from AppleInsider.

Jun Zhang, an analyst at Rosenblatt Securities, said in a note to investors that issues with the iPhone 8’s reported rear fingerprint sensor will delay the smartphone’s launch and that materials for its production won’t be available until the holiday 2017 quarter. As a result, Zhang said production orders for the new iPhone 8 will also be smaller than expected. As AppleInsider notes, Rosenblatt has also maintained an aggressively low target of $120 for Apple stock, despite its current price of around $150.

Read: Alleged Images Of Apple Smartphone Show Touch ID On Back Of Device, Matte Black Model

In the past, Zhang and Rosenblatt's predictions have sometimes been aggressive towards Apple. As AppleInsider pointed out, Zhang previously wrote in 2016 that if the Apple iPhone 7 didn’t have a significant panel upgrade, it would lack a driving feature for sales. The iPhone 7 would go on to fuel stronger year-over-year sales for Apple in the first quarter of 2017.

While Apple has kept many details for the iPhone 8 under wraps, various leaks have provided a basic outline for the upcoming smartphone. Apple is expected to pair the iPhone 8 release with an iPhone 7s and 7s Plus refresh. The iPhone 8 is also expected to be a more boutique smartphone model with a possible price point of more than $1,000. The rear of the new iPhone is also expected to include a fingerprint sensor, similarly to the Samsung Galaxy S8 and Google Pixel.

The rumored issues with the fingerprint sensor also come alongside similar product delay issues with the iPhone 8. Previously, it was rumored that Apple wanted to include Touch ID — where a user can validate their identity with a fingerprint — directly into the iPhone display. However, Apple reportedly ran into problems during the production process for the feature.

At the time, Cowen and Company analyst Timothy Arcuri said Apple could potentially choose to either rely entirely on the front-facing camera with facial recognition for user validation. Apple could also move the Touch ID to the phone's backside or delay production on the phone, but still announce it alongside the iPhone 7s and 7s Plus.

Read: Apple iPhone 8's High Price Will Not Dampen Sales, Survey Says

For Apple, the company has ample reasons to ensure that the iPhone 8 hits the same heights of past iPhone releases. While the iPhone remains a driving factor in Apple’s current success, the smartphone field will see several high-profile releases this year like the LG G6 and has already seen similar flagship models like the Samsung Galaxy S8 and Google Pixel. Apple likely wants ensure that it gets the iPhone 8 launch right and maintains its current status as a market leader.