The iPhone 17 series, the latest smartphone line-up from Apple Inc. AAPL, is reportedly facing significant stock shortages, and CEO Tim Cook is worried about it.
What Happened: The scarcity of Low CTE fiberglass cloth is reportedly causing a strain on the stock of the iPhone 17 series. This material is a vital component in the manufacturing of SoC chips, RF packaging substrates, camera modules, and batteries, as per a report by Wall Street News.
The low CTE fiberglass cloth plays a crucial role in smartphones, especially in core electronic components that demand high precision and efficient heat dissipation. It helps align the thermal expansion properties of the chip and the substrate, minimizing mechanical stress from temperature fluctuations and enhancing the device's stability and longevity.
A supply chain source cited by Wall Street News revealed that Cook, Apple’s CEO, is pushing suppliers daily to rectify the shortage. The source stated, “Cook is so anxious that he is pushing suppliers every day.”
As per MacRumors, the iPhone 17 models are expected to be launched in September.
Apple did not immediately respond to Benzinga’s request for comment.
Why It Matters: The iPhone 17 series represents more than just another flagship release for Apple—it marks the beginning of a new chapter for the brand. With a revamped design and noticeably larger camera islands on the Pro models, reminiscent of the upcoming Google Pixel 9, the lineup brings both style and innovation. Apple is also set to debut a new addition: the iPhone 17 Air, a sleeker, slimmer model aimed at users who value aesthetics.
Apple analyst Ming Chi Kuo stated in early March that there are three anticipated features of the iPhone 17 Air that could lead to better-than-expected battery life: a high-density battery, Apple's energy-efficient C1 modem, and the absence of an Ultra Wide camera, which allows for extra internal space to accommodate a larger battery, reported MacRumors.
However, the limited availability of low-CTE fiberglass isn't Apple's only challenge. The company is also concerned about the possible effects of tariffs. While Apple currently enjoys a temporary exemption, relocating production from China in time to sidestep these tariffs appears improbable. Previously, Tim Cook had mentioned that he prefers iPhone manufacturing in China due to the availability of highly skilled labor.
Even if manufacturing is shifted elsewhere, other countries would still be subject to tariffs, though potentially at lower rates. As a result, Apple may have to either absorb the additional costs or raise the prices of its phones.
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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