This is a big deal given that China is a market that Apple is relying on to push the iPhone into revenue growth.
Then there are the iPhone 7 Plus shortages. When asked during the most recent earnings call whether Apple expected to reach supply/demand balance by the end of the quarter with regards to the iPhone 7 and iPhone 7 Plus, CEO Tim Cook had this to say:
"It's hard to say. I believe that on iPhone 7 we will. On iPhone 7 Plus, I'm not sure. I wouldn't say yes at this point, because the underlying demand looks extremely strong on both products, but particularly on the iPhone 7 Plus versus our forecast going into the product launch."
This is quite a critical issue because limited supply of Plus handsets puts a downward pressure on the average selling price, and, in turn, the revenue that Apple pulls in from the iPhone.
It could also push people to buy something like a Galaxy S7 Edge or a Pixel XL.
And it can have a long-term effect -- sell someone a cheaper iPhone now because you don't have the more expensive one in stock, and you might not get a chance to sell them another iPhone for several years.