iPhone X Final Production Delayed, Potential Short Supply At Launch

Apple revealed the much-awaited iPhone X last week and set a November release date for the device, but a recent investor’s note obtained by Barron’s suggests Apple could have trouble getting the devices to customers.

Final production of the 10th anniversary device hasn’t begun yet, according to Raymond James chip analyst Christopher Caso, who conducted supply chain checks in Asia. The news comes as Apple is set to start taking pre-orders for the device on Oct. 27.

Caso wrote in the note:

“Interestingly, while the industry widely anticipated a shift in iPhone ramp timing, our checks suggest there was an incremental delay in the build plans – with orders firmed up as recently as last week – shifting production more into the December quarter.”

Caso said production is expected to start in mid-October, much later than previous predictions. The delays mean full production ramp up of the iPhone X will be pushed back to the December quarter, he said.

Caso wrote:

“That production start is about a month later when compared to expectations a month ago, and about 2 months later than expectations at the end of June. Notably, this is consistent with commentary from Diodes last week suggesting the timing had changed since reporting June quarter results and is important as it relates to tone and expectations for the December quarter.”

Meanwhile, KGI Securities analyst Ming-Chi Kuo said last week before the iPhone X reveal that the device will face "severe short supply for a while.”

The delays could mean customers might have trouble getting their hands on an iPhone X when it releases, especially since consumers are overlooking the iPhone 8 and 8 Plus for the 10th anniversary device. Kuo said this week preorders for the smartphones may have been weaker than anticipated because of the iPhone X.

iPhone X: Features

The iPhone X includes more features than the iPhone 8, especially the Face ID. The new device ditched the home button for an edge-to-edge Super Retina display with OLED technology. The lack of Touch ID brought the facial recognition feature to the iPhone X, which works to unlock the screen, as well as with Apple Pay and third-party apps. The feature protects private data with its True Depth camera system that includes an infrared camera that detects the user’s face.

Another feature the iPhone 8 doesn’t have is Animoji, which are customized animated emoji. Users can pick from dozens of animated Animoji to express their emotions on iMessage. The iPhone X also comes with a vertical-dual camera system, which includes larger and faster sensors.

All three iPhones have wireless charging capabilities, are waterproof and support augmented reality apps.

iPhone X: Pre-Order, Release Date, Price

Pre-orders for the iPhone X start next month and will start shipping on Nov. 3. The 10th anniversary device has a $999 starting price.

Meanwhile, the iPhone 8 will start at $699 and iPhone 8 Plus at $799. Those devices are available for pre-order this Friday and will ship this week.