Analyst: Apple to sell 46.5 million iPhones this quarter

Supply woes are easing, says analyst

Apple could sell as many as 46.5 million iPhones in the quarter ending Dec. 31, according to one analyst.

Sterne Agee analyst Shaw Wu brings word from supply chain sources that the Foxconn plant has been able to up its manufacturing capacity for the new iPhone 5 handset.

The Chinese factory had experienced difficulties in the large scale manufacture of the new 4-inch handset, due to component shortages and assembly troubles, leaving Apple less able to fulfil demand.

Earlier this week Foxconn chairman Terry Gou reportedly admitted: "It's not easy to make the iPhones. We are falling short of meeting the huge demand."

Issues resolved

However, the easing of these issues, Wu told investors, will clear the way for Apple to quickly replenish stocks and sell an ungodly amount of iPhones in the run up to, and immediate aftermath of, Christmas.

If Apple achieves the lofty 46.5m prediction, it would represent a gigantic leap of well over 50 per cent year-on-year, compared with the 26.9m sales it racked up during the final quarter 2011.

With Apple's share price taking a beating after missing sales expectations during the last quarterly financial report, a solid Christmas season could be the key to stocks crashing through the roof once again.

Source : http://www.techradar.com/news/phone-and-communications/mobile-phones/computing/apple/analyst-apple-to-sell-46-5-million-iphones-this-quarter-1111210

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Analyst: Apple to sell 46.5 million iPhones before end of year

Supply woes are easing, says analyst

Apple could sell as many as 46.5 million iPhones in the quarter ending December 31, according to one analyst.

Sterne Agee analyst Shaw Wu brings word from supply chain sources that the Foxconn plant has been able to up its manufacturing capacity for the new iPhone 5 handset.

The Chinese factory had experienced difficulties in the large scale manufacture of the new 4-inch handset, due to component shortages and assembly troubles, leaving Apple less able to fulfil demand.

Earlier this week Foxconn chairman Terry Gou reportedly admitted: "It's not easy to make the iPhones. We are falling short of meeting the huge demand."

Issues resolved

However, the easing of these issues, Wu told investors, will clear the way for Apple to quickly replenish stocks and sell an ungodly amount of iPhones in the run up to, and immediate aftermath of, Christmas.

If Apple achieves the lofty 46.5m prediction, it would represent a gigantic leap of well over 50 per cent year-on-year, compared with the 26.9m sales it racked up during the final quarter 2011.

With Apple's share price taking a beating after missing sales expectations during the last quarterly financial report, a solid Christmas season could be the key to stocks crashing through the roof once again.

Source : http://www.techradar.com/news/phone-and-communications/mobile-phones/computing/apple/analyst-apple-to-sell-46-5-million-iphones-before-end-of-year-1111210

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Quality-control crackdown causing iPhone 5 supply issues, Apple shares knocked

There are no worries about consumer demand for the new iPhone 5 – Apple is selling millions of them. The problem, thanks to its popularity, is on the supply side. However, quality-control issues and component shortages are not helping the situation.

When the new iPhone 5 started landing in people’s hands last month, it didn’t take long before forums started to fill with comments from disgruntled customers complaining that their handset was delivered with scuffs and scratches on its anodized aluminum back.

Its predecessor, the 4S, had a glass back so didn’t suffer from the same problem. The new aluminum design has enabled Apple to make its popular smartphone thinner and lighter than any earlier iteration, but it seems the soft material also makes it more susceptible to damage.

Quality control

It appears the issue has caused something of a stir behind the scenes at Apple, with a Bloomberg report Wednesday suggesting the supply shortage of the new handset is in part down to a quality-control crackdown by the phone’s manufacturer, Foxconn.

Foxconn is reportedly working hard to limit the number of Apple smartphones leaving its plants with scuffs and scratches, with Bloomberg citing “a person familiar with the matter” as its source.

“Senior Apple managers told executives at Foxconn near the end of September to tighten production standards,” the report claims.

A shortage of iPhone 5 components is also proving to be a problem for the Cupertino company, contributing to manufacturing challenges. As a result, RBC Capital Markets analysts have reevaluated their iPhone 5 sales forecast for the December quarter, cutting it to 49 million units from 57 million.

Share price drop

Worries about supply appear to have been a contributory factor in Apple’s falling share price, with $60 billion wiped off the company’s market value since the handset’s launch. On Tuesday shares closed at $635.85, significantly down from the record $700+ value they reached only a couple of weeks ago.

Demand for the iPhone 5 has admittedly been incredibly strong, with Apple announcing a record five million orders in its first three days of sales. Although a wait is always expected if you order an iPhone online soon after launch (currently 3-4 weeks), it seems the supply problems are being compounded by the quality-control issue and component shortages.

Scuffs

Handsets turning up with scuffs and marks were reported right from the start with the iPhone 5. One unhappy owner fired off an email to Apple’s marketing chief, Phil Schiller, and received the following response:

“Any aluminum product may scratch or chip with use, exposing its natural silver color. That is normal,” Schiller wrote. Trouble is, some of the devices have been arriving damaged.

Until the initial rush to buy the new handset dies down and Apple gets on top of the current supply issues, a certain degree of patience is required if you’re thinking about ordering an iPhone 5 anytime soon. As for Apple’s share value, no doubt that’ll bounce back once (if) it unveils the iPad Mini later this month.

Source : http://www.digitaltrends.com/mobile/quality-control-crackdown-causing-iphone-5-supply-issues/

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iPad Mini apparently enters production, instantly hits supply problems

A new report suggests the Apple iPad Mini has gone into production, and that it's already plagued by supply problems.

Sources speaking to the Wall Street Journal have said that components for the device we currently know as the iPad Mini have entered mass production. As with everything iPad Mini related, the sources are anonymous but “familiar with the situation.”

The report says it’s the device’s touchscreens that are being built, and again speculates that they will measure 7.85-inches, and have a lower resolution than the 9.7-inch iPad.

However, previous rumors have suggested the iPad Mini will share the new iPad’s 2048 x 1536 pixel Retina screen, and that production was supposed to start in August.

This news comes soon after a quote from an anonymous Apple investor, who in turn was quoting from a gaggle of unnamed sources, said invitations to the press event for the iPad Mini’s announcement would appear on October 10. An October launch has been on the cards for a while, but then, so was a joint iPhone 5/iPad Mini event.

Supply problems

But, nobody said making a hypothetical product was going to be easy, as no sooner had the elves begun working on the iPad Mini, than those ever problematic supply problems arrived. This time it’s Brian White, an analyst for Topeka Capital Markets with the inside gossip, saying that suppliers had found the iPad Mini’s specification a “challenge” and that the production had suffered because of it.

This, White says, is the reason for the iPad Mini’s delayed launch.

He goes on to talk about “continued yield challenges” — supply chain geek talk for producing the right number of products, at the right time, to make the most profit — before adding that while the iPad Mini is “on track to reach acceptable volume levels for launch,” there will be supply problems “during the first month or so.”

In other words, demand will likely outstrip supply, which is just the way Apple likes it.

The iPad Mini is supposed to be Apple’s response to the popularity of budget tablets such as Amazon’s Kindle Fire and Google’s Nexus 7. For this reason, if it does ever arrive, the price will most probably be the primary talking point, and it’s expected to be no more than $300.

We’ll know more on October 10, or not, as the case may be.

Source : http://www.digitaltrends.com/mobile/ipad-mini-production-supply-problems/

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Report: iPhone 5 shortage could stem from display production hiccups

Screen production at Sharp could be causing supply shortages

Apple reportedly moved five million iPhone 5 units in the device's first weekend on sale, but that seemingly impressive number actually falls below some analysts' low-end predictions, according to a recent report.

That may be due in part to an iPhone 5 shortage at some U.S. retailers like Best Buy, RadioShack, and Target, with some locations of which received less than a dozen iPhone 5's to sell on the handset's street date last Friday.

Now a possible explanation for that shortage has come to light, and it seems Sharp's display production line could be to blame.

New display, new problems

Apple turned to manufacturers LG and Sharp for the task of supplying iPhone 5 screens, but it seems delays at Sharp resulted in the apparent iPhone 5 stock shortage.

Sharp reportedly didn't begin producing iPhone 5 displays until the smartphone's debut earlier this month, which could certainly explain why it's in short supply at some retailer stores.

The iPhone 5's display is a half inch longer diagonally than that on previous iPhones, and reportedly costs $7 (UK£3, AU$6) extra to produce because of its larger size and in-cell touch screen technology.

That tech integrates the display and touch panel into one layer, making for superior colors but apparently also producing new production headaches.

iPhone 5 issues continue to stack up

This report comes primarily from an IHS iSuppli analyst cited by Bloomberg, but TechRadar has also reached out to Apple for comment.

The iPhone 5 is a huge launch not just for Apple but the entire consumer mobile market, which makes it a major target for critics.

However, it seems like Apple's latest money maker suffers from an unusual number of defects, even by Apple's standards (let's not forget the iPhone 4 reception debacle).

Reports of light leaks around the edge of the iPhone 5 began flooding in on Monday, and early adopters have complained of the smartphone's particularly scratch-prone chassis.

Apple may be gearing up to deal with these complaints while simultaneously battling against the iOS 6 "maptastrophe" and day-one iPhone 5 jailbreakers. Yep, that's right - it took less than a day for hackers to have their way with the iPhone 5.

Despite these issues, the iPhone 5 sales in the first weekend totaled a full million more than iPhone 4S sales in its first weekend last year.

Source : http://www.techradar.com/news/phone-and-communications/mobile-phones/report-iphone-5-shortage-could-stem-from-display-production-hiccups-1099695

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Foxconn factory at center of riot reopens, supply not affected

The Foxconn factory at the center of a large riot on Sunday night reopened on Tuesday, a company spokesperson said, adding that there has been no impact on supply.

The Foxconn factory at the center of a serious disturbance late Sunday involving thousands of rioting workers has reopened.

Company spokesperson Louis Woo told Reuters Tuesday that despite staying shut all through Monday, no impact on product supply is expected. “We have 79,000 people working in Taiyuan campus, and we always have spare inventory,” Woo said.

The trouble, which reportedly involved more than 2,000 workers causing widespread damage throughout the factory campus, was brought to a halt by around 5,000 police. About 40 people were injured, with countless arrests made.

China’s state-run news agency said the brawl started after a fight broke out between two workers in a factory dormitory. However, workers allege the incident erupted after a security guard manhandled an employee at the factory gates.

Foxconn, the world’s biggest component maker, is a major manufacturer for Apple, as well as other giants in the electronics industry. The Taiwan-based company has so far refused to say whether this particular facility, located in the northern Chinese city of Taiyuan, is involved in the production of Apple’s new iPhone 5 handset.

In an on-screen interview with the UK’s Channel 4 News program, one former Foxconn worker explained that new devices can cause great stress among workers, saying, “When a factory launches a new product, workers do overtime for long periods to test the production line until they are ready, which really puts pressure on the employees.”

He added, “A new generation of workers has higher demands. They know their rights and they’re more rebellious.”

Foxconn, which employs more than a million people across China, has been under the spotlight for the last few years following reports of employees suffering poor living and working conditions. More recently, the company has apparently been implementing changes in an attempt to improve the situation.

The Fair Labor Association said in August that Foxconn had been making good progress towards its goal of providing better living and working conditions, though if Sunday night’s disturbance can be attributed to a frustrated and beleaguered workforce cracking under the strain, it clearly still has some way to go until its job is complete.

Source : http://www.digitaltrends.com/mobile/foxconn-factory-at-center-of-riot-reopens-supply-not-affected/

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iPhone 5 sells out in 1 hour, shipping date pushed back 2-3 weeks

Sorry, pre-ordering early birds

Reports are flooding in that pre-order demand for Apple's iPhone 5 was so severe, the company sold out of its initial supply within an hour of it going on sale at 12 a.m. PDT.

U.S. shipping for the phone has also been pushed back by two weeks, meaning phones won't find their way into delivery trucks until Sept. 28, one week after the initial Sept. 21 shipping date.

As of 8:45 a.m. PDT Friday, no change had come to the two-week shipping timeframe, though the UK Apple Store is showing a 2-3 week shipping time for the 32GB and 64GB models.

A 2-3 week waiting time for some models

Apple is reportedly giving pre-orderers the option of picking up their phone at Apple retail stores next Friday.

Starting strong

Despite a somewhat lackluster response from certain fronts, the sixth-gen iPhone is apparently just what consumers want.

According to TechCrunch, the iOS 6-packing smartphone sold out 20 times faster than either the iPhone 4 or the iPhone 4S, the latter of which was the first to welcome Siri into the mobile device lexicon.

The volume of consumers on the Apple Store reportedly caused site problems like error messages to pop up.

Another new Apple product, the Lightning-30 pin port adapter designed to let legacy devices plug into the new iPhone, has also sold out.

That $29 (£18) accessory won't ship until October.

TechRadar has reached out to Apple for comment and will update this story if and when more information becomes available.

Check back with TechRadar throughout the day for updated shipping times and availability.

Source : http://www.techradar.com/news/phone-and-communications/mobile-phones/iphone-5-sells-out-in-1-hour-shipping-date-pushed-back-2-3-weeks-1097446

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Apple ditching Samsung memory chip in iPhone 5?

iPhone 5 to come with no Samsung inside?

Reports come from supply chain insiders suggest that Apple has reduced its orders for Samsung memory chips and that it will reduce the chips' usage in the iPhone 5.

Although Samsung is on the Apple supplier list for initial runs of the new iPhone, Reuters' source says that the company is trying to wean itself off the DRAM and NAND chips for later production runs.

"Samsung is still in the list of initial memory chip suppliers [for new iPhones]. But Apple orders have been trending down and Samsung is making up for the reduced order from others, notably Samsung's handset business," the Reuters source said.

Update: Bloomberg sources "familiar with the matter" have also claimed that the first batch of new iPhone handsets will not sport Samsung's memory chip, with the Cupertino-based firm opting for another one of its supplies as it was unable agree a price with its Korean rival.

Saucy

Another source, this time speaking anonymously to the Korea Economic Daily reckons that Apple has completely dropped Samsung from the memory chip suppliers even for the first batch of iPhone 5s.

But it's not down to the neverending patent battle between the two nemeses, with the source insisting that Apple was trying to widen its supplier pool anyway, no biggie.

Update: Another Bloomberg source revealed that the first batch of iPhone 5s will also snub Samsung's display – LG has already started producing screens for the next iPhone - but Apple will pop the South Korean firm's processor chip inside the device.

Samsung is said to be making up for the lost Apple business by upping supply to its own mobile handsets, including the Samsung Galaxy S3 which is selling great-guns.

We're sure both companies will be fine. The iPhone 5 is set to be unveiled at an event on September 12, with or without the Samsung hardware.

Source : http://www.techradar.com/news/phone-and-communications/mobile-phones/apple-ditching-samsung-memory-chip-in-iphone-5-1095462

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Apple cuts back chip orders from Samsung, the war rages on

You are all aware of the recent major US patent lawsuit involving Apple and Samsung. So far their patent quarrels had not have any impact on their component supply deal, which has Samsung provide most of the memory chips that Apple uses in its mobile device.

According to Reuters and several other news outlets, all citing anonymous sources, with the iPhone 5, Apple is now steering away from Samsung as its main chip supplier. Instead, the company is looking to strengthen its supplies from competing chip manufacturers such as Toshiba, Elpida and Hynix.

Photo by Reuters

So what are we witnessing here? Is it that Apple is getting ready for a long war, or it's just that it doesn't like to do any further business with Samsung?

It could also be that Samsung is using its chip manufacturing deal as a leverage in their patent brawls across the world or just on the contrary, it's Apple that's using the cutting back of the orders as a leverage. Apple is supposedly Samsung’s largest components client with estimates pointing that their deal is supposedly bringing billions in yearly revenue. Well, we may never learn the truth.

Source | Via
Source : http://www.gsmarena.com/apple_cutting_back_chips_orders_from_samsung_aims_independence-news-4775.php

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