Saturday, November 17, 2012

Apple Inc.(NASDAQ:AAPL )’s Lead Times are Finally Reducing

50 million Apple Inc.(NASDAQ:AAPL )’s iPhones can be sold in the December quarter because the demand is still at a peak. But the problem lies in how many Foxconn can manufacture to match the demand, because they had previously said the iPhone 5 was one of the most complex models to produce and the demand growing each day has added to their difficulties as well.

But even so, the supply seems to catch up to the demand because the lead times for iPhone 5 are reducing on Apple’s and the US carriers web sites. So it might be that the supply is getting better vs. the demand decreasing. This can be a huge plus for the company as the main holiday season is about to begin. Lead times were previously at 3-4 weeks from September 18 until they dropped to 2-3 weeks on Monday, November 12, in all the countries that Apple has retail stores.

Website lead times at AT&T have reduced from 2-3 weeks in late September to 1-2 weeks in early November to immediate availability around November 10. However, Verizon’s website lead times were 4 weeks in late September and didn’t drop to 3 weeks until late October. The expected shipment was on November 16, as of late October, but it was suddenly changed to current availability on November 15. Sprint’s lead times, which began at 3 weeks in late September but times for the 32GB and 64GB configurations dropped to 1 week in early October and it wasn’t until late October that the 16GB versions lead times decreased to 1 week.

Since Apple wants to release the iPhone 5 with 240 carriers in 100 countries, it is going all out to make sure the demand is not affected, if they have to meet the target at the end of this year.

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