Apple Inc. (NASDAQ:AAPL) customers holding out for the iPhone 8 might have to wait a while longer after analysts fuelled speculation that shipments could be delayed.
The tech giant - which has been expected to release its 10th anniversary iPhone in September - has run into development problems with the fingerprint sensor, according to a number of analysts’ notes.
Apple is said to be looking to remove its Touch ID home button, which includes the fingerprint sensor, to make way for an edge-to-edge screen display.
The fingerprint sensor is expected to be built directly in the screen or located on the back of the phone.
But the company has reportedly suffered issues with making these changes to the fingerprint sensor as it is said to be failing to work through the glass.
The iPhone’s new display is expected to include an organic light-emitting diode (OLED) screen and 3-D sensing capability, while the body of the device is rumoured to be readopting glass as used for the iPhone 4.
Andy Hargreaves, an analyst at KeyBanc Capital Markets, said that's what the development issues are coming from with the fingerprint sensor.
Apple may ditch fingerprint sensor for facial recognition
Apple may have to give up on the fingerprint technology and use facial recognition instead, Hargreaves said.
“While this is possible, we do not view it as attractive as it would create usability risk and would likely require shipping without initial qualification for Apple Pay, both of which could hurt unit sales and sales mix,” Hargreaves wrote.
Hargreaves added that Apple’s gross margin would suffer a hit as the group continues to work with third-party engineers to fix the sensor.
Goldman Sachs cuts revenue forecast for Apple
Goldman Sachs analysts predict three possible shipment dates of 22 September, 29 September and October. Based on a launch in September, it cut its annual revenue guidance to US$51bn from US$53bn. If the phone is launched in October, revenue is expected to fall to less than US$48bn as there would be zero selling days for the new device in the fourth quarter.
iPhone sales fell for the first time last year so Apple will need to launch the highly-anticipated new model before the end of this fiscal year to avoid another decline.
In May, chief executive Tim Cook warned that iPhone sales were slowing as consumers were holding out for the next model. Apple reports its third quarter results on 1 August.