Monday, November 12, 2012

Apple Inc. (NASDAQ:AAPL) to Sell 46.5 Million iPhones in December, as iPhone 5 Supply Improves

Foxconn had recently reported that they were having a tough time in manufacturing iPhone 5 models because the process was complex, which may have led to supply constraints. But there are definite indications that Apple Inc.(NASDAQ:AAPL)’s capacity has improved quite a bit. Shaw Wu of Sterne Agee said in a note to investors on Thursday, that he has probed into Apple’s supply chain and confirmed that the production capacity has significantly gone up, ever since the iPhone 5 debuted in September.

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Wu has calculated that Apple is likely to sell around 46.5 million iPhone units overall in the December quarter, now that supply constraints are under control. If Wu’s predictions are correct, then it will be a huge quarter-over-quarter increase from the 26.9 million iPhone units shipped by Apple in the September quarter.

Foxconn Chairman Terry Gou had stated earlier this week that his firm had to put in tremendous efforts to keep up with the demand for the iPhone 5, since orders were pouring in by the hour. In fact, Gou admitted that Foxconn had fallen behind schedule due to this enormous demand. Wu says that the supply chain problems regarding components have been resolved, although the assembly of the device is creating an issue.

Apparently, the in-cell touch panel and aluminum chassis of iPhone 5 have led to quality control issues for both Foxconn and Apple. A source from Foxconn went so far as to say a month back, that iPhone 5 is the most complicated device that the company has assembled till date. A survey conducted last week of US carriers revealed that constraints of iPhone 5 are still abundant in the top two carriers – Verizon and AT&T, whereas supply of the model is going up in the 3rd-largest carrier, Sprint.


  1. You can sell 45 million devices, provided you can actually make 45 million of them ROFL.

    1. And don't forget this is also assuming that your customer base will still continue blindly buying an inferior device at (super-) superior prices


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