iPhone rumored to have OS issues, limited quantity will be available at launch

Bad news from the rumormill. Apparently they guys over at Infinite Loop have gotten some inside information from an unnamed source that things aren't going so well with the iPhone.

According to their source, Apple has known for some time that Leopard would be delayed because they moved 50 of their top engineers to Taipei two months ago. The good news is that the battery life seems to be fine. The OS is another matter. Apparently they are experiencing issues with software Q/A.

The worst news comes from their source at Foxconn/Hon Hai who claims that "it does not look feasible that Apple will be able to ship units out in May to make the shipping date in the US (June), so expect units to trickle by end of June or early July." 'Trickling' is exactly what Apple needs to avoid in order to have a successful launch.

If these rumors are to be believed, although we may still see iPhones out by late June, there won't be many of them. Let's hope their information is incorrect.

Source: iPhone running into OS issues, won't meet demand [via infiniteloop]