A key iPhone 8 feature could be disastrous for Apple's plans.
If you are holding out to upgrade to the iPhone 8, you might want to reconsider your options.
After being criticised for only delivering minor tweaks to recent iPhone models, Apple has been working to deliver the drastically overhauled device fans have been demanding.
The tech giant is expected to announce a premium iPhone 8 model to be released alongside the improved iPhone 7S and 7S Plus.
But development of the tenth anniversary iPhone 8 is not going to plan and this is bad news for consumers.
According to a research note from KeyBanc Capital Markets analysts Andy Hargreaves, John Vinh and Josh Beck, Apple is struggling to get its Touch ID feature to work with the iPhone 8's edgeless OLED display.
"Apple continues to struggle with the workaround for the fingerprint sensor," Hargreaves said in the note, which was obtained by Barron's.
"This increases the potential that the new OLED iPhone could be delayed, or ship without a fingerprint sensor, either of which could increase risk to unit sales and mix for the cycle."
The tech company originally introduced the Touch ID to the iPhone 5S as an alternative to passcodes, with the feature later acting as the foundation for Apple Pay.
As it is believed to take 12 weeks from placement of fingerprint scanner to full volume production of the device, analysts suggest Apple will need to have the problems solved before the end of August to have the iPhone 8 ready by late October or early November.
"It is entirely unclear if Apple will be able to fix the problem in this time frame," he wrote.
If Apple can't get the problem fixed in a reasonable time frame, analysts tip the company will be forced to abandon the Touch ID entirely and rely solely on facial recognition for login and authentication - a dangerous option as that method poses numerous security risks.
"This option appears increasingly likely as time passes, but is far from ideal. We believe Apple's facial recognition solution should work from many angles and in lowlight environments. However, it would not work without clear line of sight to the user's face," he wrote.
"Further, we do not believe facial recognition would be initially qualified as an acceptable verification method for Apple Pay. While Apple could achieve this over time, the likelihood for an initial lack of Apple Pay could adversely affect demand."
Last week, the world's most accurate Apple analyst - once responsible for correctly predicting Apple's entire product line-up - said he was still puzzled over the plan for the fingerprint sensor.
"The OLED model will also come with a virtual Home button, though the button will not support fingerprint recognition," he explained in a research note.
Kuo said the tech giant's existing fingerprint recognition would not work with the full-screen design and claimed there has been many technical challenges with the scan-through ability of the under-display fingerprint solution.
He added these difficulties will likely see a delay in the iPhone be ready for consumers.
"For optimised promotional effect, we think Apple may unveil the three models simultaneously in September, though the launch date of the OLED version may trail that of LCD models, and supply tightness may not improve before 1H18," the note read.
Earlier this year, a shared schematic of the forthcoming device showed the fingerprint scanner moved to the rear of the phone and while Android phones have used this feature for years, Apple fans were not supportive of the concept.
WHAT ELSE CAN I EXPECT FROM THE IPHONE 8?
The bold new design is expected to include a stainless steel frame between two glass panels, which slightly curve to give the appearance of iPhone made of one continuous sheet of glass.
Apple's iPhone 8 is also thought to have an advanced edge-to-edge 5.8-inch OLED display that will rival the impressive 83 per cent screen-to-body ratio seen on Samsung's Galaxy S8 and S8+.
A new dual-lens camera system that will feature the same optical zoom capability as the iPhone 7 Plus' camera, although the module on the iPhone 8 will be oriented vertically.
This is likely to do with the internal hardware engineering needed to fit the dual camera, front camera and new 3D infra-red sensors.
However, it could also be designed to enable the new augmented reality features Apple is expected to reveal at its annual September event.