The iPhone 7 and iPhone 7 Plus Jet Black colour has turned out to be extremely popular, but early adopters have had to wait as the new models face a global shortage due to the new high-gloss finish being a challenge for the company’s manufacturers.
Apple says the high-gloss Jet Black finish is achieved through a precision nine-step anodization and polishing process.
According to KGI Securities analyst Ming-Chi Kuo, Jet Black models suffer from a low casing production yield rate of 60-70%, meaning that 30-40% of units do not pass Apple’s quality standards and must be scrapped.
When pre-orders began on September 9, shipping estimates for Jet Black models quickly slipped to November, but some of our readers have told me that they have received their orders sooner than expected. Though In-store availability of Jet Black models remains scarce.
Kuo stated that limited availability of Jet Black models, along with demand driven by Samsung’s recent Galaxy Note 7 recall, contributed to an initial iPhone 7 shortage.
Early shortage not entirely due to market demand. Shipment time for online orders is on par with last year’s cycle, generally estimated within 2-3 weeks, with the exception of the jet black model, which suffers from a low casing production yield rate of 60-70%. However, with the number of countries in the first wave to debut the iPhone 7 rising to 28 this year, versus 12 for the iPhone 6S launch, we believe overall demand for iPhone 7 is lower than that of its predecessor. Regarding news of some mobile operators reporting pre-order growth for the iPhone 7 over last year’s 6S, we believe this is mainly attributable to market share gains for these mobile operators thanks to new promotions, rather than representing greater consumer demand.
Have you received your Jet Black Pre-order yet? Let us know!