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Why it's so hard to find a jet-black iPhone 7

Sep 26, 2016, 18:16 IST

Hollis Johnson/Business Insider

One color of the iPhone 7 and iPhone 7 Plus is really hard to find: jet black.

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If you order an iPhone 7 Plus in the shiny, scratchable finish from Apple today, it won't be delivered until November.

There's a lot of reasons for the shortage, but the main one is that Apple is having trouble with jet-black case production, according to a research note from KGI Securities analyst Ming-Chi Kuo obtained by Business Insider.

The jet-black iPhone 7 model "suffers from a low casing production yield rate of 60-70%," writes Kuo. That means that Apple's partners, when producing the new finish, are producing a substantial number of cases that don't meet quality standards.

That's leading to an "undersupply," according to Kuo.

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Also contributing to the problem is that "jet-black is the most popular choice," according to a pre-order survey conducted by KGI Securities. Jet-black iPhones accounted for 30-35% of pre-orders worldwide, and nearly half of pre-orders in China, the survey suggests.

"The survey offers an insight into iPhone buyers' tendency to choose models that are aesthetically different from the 6S. Popularity of the jet-black version indicates that consumers prefer an alternative to the traditional metal finish," Kuo writes.

Ultimately 50% of pre-orderers opted for the iPhone 7 Plus as compared to the smaller model, the survey suggests.

Still, even with the increased demand for jet-black iPhones, Kuo thinks that the iPhone 7 will sell fewer units in 2016 than the iPhone 6S did in 2015.

The initial iPhone 7 shortage was not entirely due to demand, instead, it was constrained by supply. The device launched in 28 countries simultaneously, as compared to 12 last year.

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"We maintain our forecast that iPhone 7 shipment volume in 2016 will be lower than that for the iPhone 6S in 2015," Kuo writes.

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