Touch ID
Apple might completely ditch the Touch ID fingerprint sensor for the iPhone 8. REUTERS/Jason Lee

A new report has surfaced claiming that Apple is still struggling on how to implement its Touch ID fingerprint sensor for the iPhone 8. Because of this, the high-end iPhone 8 might possibly even ship later this year without the fingerprint sensor at all.

“Apple continues to struggle with the workaround for the fingerprint sensor,” KeyBanc Capital Markets analyst Andy Hargreaves said. “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.”

Hargreaves believes that Apple is still having problems implementing its Touch ID fingerprint sensor in the OLED display of the iPhone 8. The analyst also says that Apple only has until August to place the orders for the chips that runs the sensors. Missing this window would mean that the iPhone 8 might not ship with Touch ID at all.

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Another possibility pointed out by Hargreaves is that this issue could further delay the release of the iPhone 8. If Apple is able to resolve the problem with the fingerprint sensor and order the required chips before August, then Apple would be able to reach its preferred volume production by late October or early November.

The issue with the fingerprint sensor introduces two major problems for Apple. If the iPhone 8 doesn’t ship with Touch ID, it wouldn’t be a reliable device for online payment authentication and Apple Pay. This would result in consumers turning their backs on Apple.

“Abandon the fingerprint sensor entirely and rely solely on facial recognition for login and authentication. This option appears increasingly likely as time passes, but is far from ideal,” Hargreaves said. “Further, we do not believe facial recognition would be initially qualified as an acceptable verification method for Apple Pay.”

Last week, IBT reported that Apple was developing a 3D facial recognition scanner for the iPhone 8. This new way of unlocking the phone would use a combination of eye-detection and 3D sensor technology to accurately recognize a user’s face. It’s believed that Apple intends for it to eventually replace Touch ID.

Facial recognition technology on a smartphone isn’t entirely new. Samsung implemented this kind of tech for the Galaxy S8 and Galaxy S8+. However, users found out that this can easily be fooled by a high-resolution photo. Apple’s 3D facial recognition tech is said to be more advanced, but consumers might still not be convinced.

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If Apple decides to delay the release of the iPhone 8 in order to implement its in-display fingerprint scanner, it could also hurt Apple’s 2018 sales. “A delay up until mid-November would not likely have a meaningful impact on our expectations for the cycle. Beyond this, we would expect mix and total unit volume for F2018 to be meaningfully affected,” Hargreaves said. The analyst also said that it’s possible but very unlikely for Apple to delay the release of the iPhone 8.

Although it seems like Apple struggling to put its Touch ID fingerprint sensor inside the iPhone 8’s OLED display, some other companies have already been able to achieve this kind of tech. Both Qualcomm and Vivo have already introduced fingerprint sensors that can work beneath OLED screens. However, the tech won’t be hitting consumer devices until some time next year