Supply chain loading up with first 'iPhone 7' shipments, Apple Store down for event

AppleInsider

With 371,000 units of the "iPhone 7" family said to be inbound to retail establishments, Apple appears to have a good start on channel inventory for late September availability.

Apple manufacturing partner Foxconn has shipped out 371,000 "iPhone 7" family devices as of Sept. 5, according to supply chain monitor Digitimes. According to China media reports, the first retail shipments are destined for Italy, the Netherlands, the U.K., and the U.S.

Reportedly, the first batch of 84,700 phones are said to have passed through customs on Sept. 2. Apple generally ships online pre-orders to customers directly from China.

It is not clear if the customs report is outbound from China, or inbound to the U.S. Historically, container ships with large quantities of Apple products have taken between two and three weeks to transit between a Chinese port and a U.S. port.

DigiTimes has a spotty track record of picking out Apple product specifics. However, the venue focuses on the supply chain as a whole, and is generally accurate on matters such as shipments crossing customs checkpoints.

As expected, online Apple Store closed

As is normal for the day of an omnibus Apple event, the online sales portal has closed. Users that clikc on the "shopping bag" icon in the upper right hand side of the screen are greeted with a "we'll be right back" message.

Expected to be unveiled at Wednesday's event are the "iPhone 7," "iPhone 7 Plus," a new Apple Watch with GPS, and new Beats products. The iOS 10 "golden master" will likely be discussed, and become publicly available before the end of the month.

The 3.5-millimeter headphone jack has likely not been included on the new iPhones. Both new models are rumored to use the new "A10" processor, and include an improved 3D Touch sensor.

The "iPhone 7 Plus" is said to have 3 GB of RAM, and a 12 MP dual-lens camera.

Leaked parts suggest that a refresh of the Apple Watch will contain a slightly larger battery, which could be used to offset the battery power needed for rumored GPS tracking. As with the "iPhone 7," additional waterproofing is expected as well.

New Mac hardware is not expected at Wednesday's event.

AppleInsider will be providing live coverage of the event starting at 10 a.m. Pacific, 1 p.m. Eastern.

SpamSandwich

Prepare for disappointment haters! For everyone else, enjoy the presentation!

gcjohn

That seems like a very low number to me...

tmay

You might to change the picture to a FedEx aircraft.

South Korean container shipping company Hanjin is in bankruptcy and a lot of product is being blocked from entry into the country by payment issues for shipowners and what not.

http://www.stltoday.com/business/local/hanjin-s-ghost-ships-seek-havens-as-food-water-dwindling/article_963dce5d-66d5-5b2a-a7af-e05d02fc9b75.html

jfc1138

gcjohn said:

That seems like a very low number to me...

It's just a segment of retail, the big numbers initially are online I expect. 

maestro64

the faster cargo ships from China to the US is 18 days on the water, and that is to a west coast point of entry, if it goes to the east cost add another 7 to 10 days. The question would be besides the fact we debating what Digitimes is saying, why would apple change its logistic model for the new phone. With that said, they would be putting some on the water while others will be shipped direct to pre-order customers and by the end of the month the ones on the water will be hitting the store shelves.

stantheman

maestro64 said:

the faster cargo ships from China to the US is 18 days on the water, and that is to a west coast point of entry, if it goes to the east cost add another 7 to 10 days. The question would be besides the fact we debating what Digitimes is saying, why would apple change its logistic model for the new phone. With that said, they would be putting some on the water while others will be shipped direct to pre-order customers and by the end of the month the ones on the water will be hitting the store shelves.

If Apple is shipping iPhones by boat, then Foxconn had already produced more than enough units for the initial launch (20 million?) and put them on planes. Units arriving in Italy have been featured in another article. It seems likely that Foxconn would make daily shipments, so the 371,000 figure might represent the number assembled the previous day. That's an annual rate of 135 million, which seems about right in these circumstances.

tmay

maestro64 said:

the faster cargo ships from China to the US is 18 days on the water, and that is to a west coast point of entry, if it goes to the east cost add another 7 to 10 days. The question would be besides the fact we debating what Digitimes is saying, why would apple change its logistic model for the new phone. With that said, they would be putting some on the water while others will be shipped direct to pre-order customers and by the end of the month the ones on the water will be hitting the store shelves.

I would believe that Apple is shipping 100% by air carrier; FedEx, Airborne, or whomever at this point in time.

maestro64

tmay said:

maestro64 said:

the faster cargo ships from China to the US is 18 days on the water, and that is to a west coast point of entry, if it goes to the east cost add another 7 to 10 days. The question would be besides the fact we debating what Digitimes is saying, why would apple change its logistic model for the new phone. With that said, they would be putting some on the water while others will be shipped direct to pre-order customers and by the end of the month the ones on the water will be hitting the store shelves.

I would believe that Apple is shipping 100% by air carrier; FedEx, Airborne, or whomever at this point in time.

I believe that to be true, they ship air for the pre-orders, to a central distribution center in the US and then ship to their customers. However, they do not ship 100% via air, it is way too costly, it almost 3x of water. After initial launch, the move to ocean shipments since they now have a pretty good idea of the product mix at that time.