Potential Delay in iPhone 15 Debut Could Impact Apple's Profit Margins Amid Manufacturing Issues

Apple Inc's AAPL upcoming iPhone 15 Pro and Pro Max models are facing manufacturing issues.

The iPhone maker and its suppliers are struggling with a "new manufacturing process" that allows the iPhone 15 Pro and Pro Max to have larger screen displays without increasing the device size, the New York Times reports.

Also Read: The Great Wall of Apple: Despite Production Shifts, China Remains iPhone Maker's Preferred Partner

The screens made by LG Display have failed reliability tests during production, causing delays and shortages.

The manufacturing problems may result in fewer units for the iPhone 15 Pro and Pro Max models during their expected September release. The shortage is likely to be more severe for the Pro Max model.

The iPhone Pro and Pro Max are premium versions of Apple's base model, with the Pro 14 starting at $999 on Apple's website, $200 more expensive than the standard model.

The latest iPhone Pro and Pro Max version will feature a USB-C port for charging, along with enhanced battery life and performance, the report says.

The manufacturing issues with the iPhone Pro 15 and Pro Max led to a crisis of the higher-priced devices, potentially impacting Apple's profit margins.

Bank of America analyst Wamsi Mohan warns of potential delays in the iPhone 15's debut, projecting Apple's fourth-quarter revenue to be $87.1 billion, falling short of the consensus estimate of $91.6 billion due to the possible delay.

Apple's much-hyped Vision Pro mixed-reality headset also faces production issues, with drastic production cuts reported earlier this month. The Vision Pro is likely to launch in early 2024.

Price Action: AAPL shares traded higher by 0.17% at $193.45 premarket on the last check Friday.

Photo via shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.