Apple Inc. (NASDAQ:AAPL) may struggle to meet immediate demand for the iPhone X due to set-backs related to the supply of several components used in the device, according to KGI analyst Ming-Chi Kuo.
The company is likely to have between 2-3 mln of the iPhone X available for purchase when pre-orders open next week, said Kuo, who is known for accurate reporting on Apple’s supply chain.
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Apple usually sells more than 10 mln phones in opening weekend sales alone.
Earlier reports have suggested the 3D face-scanning sensor was to blame for the supply shortages.
But in a note covered by 9to4Mac, Kuo said the biggest hurdle related to the supply of circuit boards for the antenna and the wide-angle camera.
Special materials, processes and stringent tests are required for Apple to sign off on the produced iPhone X antenna component, he said.
Kuo also mentioned there were previous issues with the dot projector in detecting human faces in certain conditions but this has been resolved.
KGI cut its estimates for initial fourth quarter shipments from 30-35 mln to 25-30 mln units.
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However, Kuo expects shipments could pick up by as much as 50% in the first quarter of 2018 as he thinks output of the circuit boards and dot projector will rise sharply in November after Apple fixes the problems.
This will allow Apple to increase iPhone X production shortly after its official launch on 3 November in time for the key holiday season.
Shares in Apple edged up 0.46% to US$155.98 in US pre-market trading.