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