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Foxconn chairman says company is falling short of demand for Apple's iPhone 5

post #1 of 75
Thread Starter 
Crushing demand for the iPhone 5 has proven to be too much for Apple's manufacturing partner, Foxconn, to handle, as it continues to struggle to produce the device.

Foxconn Chairman Terry Gou admitted on Wednesday that his company is finding it difficult to meet the significant demand for Apple's iPhone 5, according to a report from Reuters. Foxconn is Apple's primary partner for assembly of a number of its devices, including the iPhone.

"It's not easy to make the iPhones," Gou reportedly said. "We are falling short of meeting the huge demand."

Sales of the iPhone 5 have been held back by limited supply since the device launched in September. Apple itself said the company has been "completely blown away" by consumer demand for the device.

Unboxed


In particular, the in-cell touch panel and aluminum chassis featured in the new design of the iPhone 5 are said to have posed quality control issues for both Apple and Foxconn. One unnamed source from Foxconn revealed in October that the iPhone 5 is "the most difficult device" the company has ever been tasked with assembling.

Rumors first surfaced a month ago that Foxconn had expanded production to a subsidiary known as Foxconn International Holdings in an effort to boost production. When asked about that rumor on Wednesday, Gou declined to comment.
post #2 of 75
Thank you, Tim Cook, for not being able to build a decent supply chain of Apple products. The news media is having a field day and Wall Street believes every word of it. Samsung can supply tens of millions of its smartphones to consumers without a sweat, but Apple struggles. With loss of innovation and a poor supply chain, there's only one direction for Apple to go and that's down.
post #3 of 75

I hope this is not true because they need the big sales thru Christmas.

post #4 of 75
Apple needs a second supply chain, hopefully American. There demand is growing, it's nearly 2 months and people are still waiting,
post #5 of 75
Foxconn needs to quit whining. If they couldn't handle the job they should have spoken up long before this went into production.
post #6 of 75

This information without any numbers is only so much wall street fodder.

If they can only just produce 100 a day then this is a problem

but if the can only produce 1000000 a day then this is more of an over demand problem than a production one

Even if it is harder to assemble I'm sure they are still producing huge numbers of phones

post #7 of 75
Quote:
Originally Posted by Curtis Hannah View Post

Apple needs a second supply chain, hopefully American. There demand is growing, it's nearly 2 months and people are still waiting,
You want to pay $1000 for an iPhone? I don't.
post #8 of 75
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Originally Posted by Rogifan View Post


You want to pay $1000 for an iPhone? I don't.


Effectively, you probably are.

post #9 of 75
Quote:
Originally Posted by ankleskater View Post


Effectively, you probably are.
How so?
post #10 of 75

I doubt if we'll ever get this iPhone in  South Africairked.gif

post #11 of 75
Quote:
Originally Posted by Constable Odo View Post

Thank you, Tim Cook, for not being able to build a decent supply chain of Apple products. The news media is having a field day and Wall Street believes every word of it. Samsung can supply tens of millions of its smartphones to consumers without a sweat, but Apple struggles. With loss of innovation and a poor supply chain, there's only one direction for Apple to go and that's down.

what complete crap...Thanks for troll, but its not difficulty of making the device that's causing issues, but the HIGH demand. Btw in India the iPhone 5 was launched and within 3 days limited stock was sold. Samsung dropped their SIII price by 5% and people still wanted to try and get iPhone 5. I was offered USD2,000 for mine. I did not sell it because even though, I could wait 3-4 weeks to get another one (even 64Gb) version, it feels great to be one of the first in country and money is not everything.

 

Btw my wife who is strong supporter of Samsung SIII and fell in love with iPhone 5 for design and lightweight!


Edited by souliisoul - 11/7/12 at 6:10am
post #12 of 75
Quote:
Originally Posted by ankleskater View Post


Effectively, you probably are.

Please enlighten us how US customers are effectively paying USD$1,000 on 16GB version??

I think this guy is extremeskater, who was always writing crap, non-supportive, troll data with concern to Apple

post #13 of 75
Quote:
Originally Posted by souliisoul View Post

what complete crap...Thanks for troll, but its not difficulty of making the device that's causing issues, but the HIGH demand. Btw in India the iPhone 5 was launched and within 3 days limited stock was sold. Samsung dropped their SIII price by 5% and people still wanted to try and get iPhone 5. I was offered USD2,000 for mine. I did not sell it because even though, I could wait 3-4 weeks to get another one (even 64Gb) version, it feels great to be one of the first in country and money is not everything.

 

Btw my wife who is strong supporter of Samsung SIII and fell in love with iPhone 5 for design and lightweight!


The iPhone5 is the best phone ever produced - truly masterpiece.  I don't understand why people keep saying Apple is falling behind the competition. 

post #14 of 75
Went to several stores here in Indiana, all of them completely sold out of the iPhone 5, with no ETA on when they would be receiving the next batch. Ended up going to the Apple store direct and purchasing - now looking at possible ship date of Dec 2 - Dec 7th.

Patience, patience, patience.... 1smile.gif
post #15 of 75
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Originally Posted by smiffy31 View Post

This information without any numbers is only so much wall street fodder.

 

Isn't it just.

post #16 of 75
Originally Posted by souliisoul View Post
Please enlighten us how US customers are effectively paying USD$1,000 on 16GB version??

 

He's implying that a US-manufactured iPhone would have to sell for $1,000 (perhaps that's even his assumed on-subsidy price) due to the price of regulation and increase in worker wages/benefits that comes from manufacturing in the US. It's hyperbole, but his point isn't incorrect.

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Originally Posted by Marvin

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post #17 of 75
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Originally Posted by rsdofny View Post


The iPhone5 is the best phone ever produced - truly masterpiece.  I don't understand why people keep saying Apple is falling behind the competition. 

Because they are gullible specsperts with no brains.

post #18 of 75
Quote:
Originally Posted by rsdofny View Post


The iPhone5 is the best phone ever produced - truly masterpiece.  I don't understand why people keep saying Apple is falling behind the competition. 

Exactly, that's why I am still patiently waiting for mine. Obviously in our region the 32Gb seems to find unexpectedly high demand. I ordered mine just on the sunday after the preorder started, but still no one could give me a ETA for my iP5 32GB. It's now more than a month.

 

I wonder now really how many they sold by now. Must be in the tens of millions.

post #19 of 75
Crushing demand.
Can't manufacture iPhone 5 fast enough to meet demand.

And this is seen as bad news.

I bet Microsoft would like some of this 'bad news'.
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post #20 of 75
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Quote:
Originally Posted by monstrosity View Post

Because they are gullible specsperts with no brains.

And because they firmly believe if you repeat a lie often enough people will accept it as the truth. Unfortunately they are correct. Just ask any politician.
post #21 of 75
With more info, this story could be interesting. As it is, I'm not sure it's a data point
post #22 of 75
Quote:
Originally Posted by smiffy31 View Post

This information without any numbers is only so much wall street fodder.

If they can only just produce 100 a day then this is a problem

but if the can only produce 1000000 a day then this is more of an over demand problem than a production one

Even if it is harder to assemble I'm sure they are still producing huge numbers of phones

 

I wonder what Wall Street would do if he had said that so far Foxconn was only able to produce 20 million phones while demand called for 25 million and that will only get worse in November when we expect to make 25 million iPhones and demand will be in the neighborhood of 32 million phones and similarly for December.

 

Would Wall Street see this as a positive or a negative...

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post #23 of 75
Apple along with the rest of Wall Street is getting hammered today.
post #24 of 75
Quote:
Originally Posted by Rogifan View Post


You want to pay $1000 for an iPhone? I don't.

 

Sure, I'd pay 2,000. for an iPhone. Apple should raise the price.

post #25 of 75
Quote:
Originally Posted by Rogifan View Post


You want to pay $1000 for an iPhone? I don't.

If they were made in the US you wouldn't pay $1000, it would most likely only add around $100 to the cost.  You have to remember that those foxconn workers work on a lot more than one iphone per hour so the cost of the hourly wage does not add to the cost of the phone as you think.  For example if a worker gets paid $100 an hour but creates 10 products in one hour than the cost of labor was $10 per unit

post #26 of 75
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Originally Posted by Rogifan View Post

Apple along with the rest of Wall Street is getting hammered today.

Four more years of pouting.
post #27 of 75
Quote:
Originally Posted by Rogifan View Post

How so?

He's probably gonna go into a rant about how much you pay for service from your carrier and how it's overpriced which isn't exclusive to the iPhone. It's quite alright for Apple to have healthy profit margins but god forbid anyone else does. One cannot buy a Ferrari to then complain about the price of premium gasoline.
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post #28 of 75
Quote:
Originally Posted by Tallest Skil View Post

He's implying that a US-manufactured iPhone would have to sell for $1,000 (perhaps that's even his assumed on-subsidy price) due to the price of regulation and increase in worker wages/benefits that comes from manufacturing in the US. It's hyperbole, but his point isn't incorrect.
I disagree. You touched on his point I believe, but only lightly. He is saying that when you include the price of the contract you have to purchase with the phone you are paying over $1000 for the phone. It is subsidized to get you into the phone and you cannot get out of it until you have completed your contract. He did not speculate at all in that post on how much a US manufactured phone would cost from what I can see.
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post #29 of 75
Originally Posted by NoahJ View Post
He did not speculate at all in that post on how much a US manufactured phone would cost from what I can see.

 

No, that's EXACTLY what he's saying.

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Originally Posted by Marvin

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post #30 of 75

An obvious situation, when the manufacturing envelope is pushed so far. Hopefully this doesn't result in Foxconn sliding further into worker abuse. I will be interested to see how well Apple's partners in friction-stir welding keep up with iMac demand.

Aside from having less demand, Samsung doesn't have the same issue because, on the build quality continuum, they are in the snap-together-plastic direction.

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post #31 of 75

I wonder if Foxconn can make ultra-small violins. (You know the rest of the joke.) 

post #32 of 75
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Originally Posted by Rogifan View Post

Apple along with the rest of Wall Street is getting hammered today.

America reelected one of their best presidents. That's reason enough to let Wall Street go on crash course.

post #33 of 75
Quote:
Originally Posted by souliisoul View Post

what complete crap...Thanks for troll, but its not difficulty of making the device that's causing issues, but the HIGH demand.

 

From the article "It's not easy to make the iPhones," and FOXCONN representatives already said that the iPhone 5 was difficult to make.

The phones has been extremely hard to find in France for a month, less than thousands sell per day for each operator.

And you shouldn't call a troll someone who's been here far longer than you.

post #34 of 75
Quote:
Originally Posted by Constable Odo View Post

Thank you, Tim Cook, for not being able to build a decent supply chain of Apple products. The news media is having a field day and Wall Street believes every word of it. Samsung can supply tens of millions of its smartphones to consumers without a sweat, but Apple struggles. With loss of innovation and a poor supply chain, there's only one direction for Apple to go and that's down.

Assuming you're not joking, and in case anyone wants to take you seriously, this would be a dumb thing to say on many levels.

For one, Samsung is not building anything like the fine instrument that Apple is, an instrument that incorporates innovation is several ways that no other company would dare to attempt. Do we need to list them for you? Assuming you're not joking, that is. You have to be joking . . .
post #35 of 75
Quote:
Originally Posted by rsdofny View Post


The iPhone5 is the best phone ever produced - truly masterpiece.  I don't understand why people keep saying Apple is falling behind the competition. 


"People keep saying Apple is falling behind" because they are paid shills for the competition.

No informed, rational, reasonable person believes that Apple is falling behind. Apple has been more truly innovative in the consumer electronics space in the last decade than any other company which is impressive considering the competition.

Apple has outstanding supply chain management but, unlike competitors, refuses to use lower quality components with lower quality quality assurance.
post #36 of 75
Quote:
Originally Posted by Rogifan View Post

You want to pay $1000 for an iPhone? I don't.

I paid €873 / $1114 in the Apple Store for my 64GB. Cheaper than any offer out there!
I’d rather have a better product than a better price.
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post #37 of 75

Wait, but I thought the iPhone 5 was a 'boring' upgrade, a massive dissapointment, pathetic compared to the competition, had massive flaws, useless maps, photos that show a wall of purple, and came out of the box looking like its been through a blender? How can anyone want the device? 

 

A big **** you to all the naysayers and pundits predicting failure. People want the shit out of this phone.  

post #38 of 75
Quote:
Originally Posted by Rogifan View Post

Foxconn needs to quit whining. If they couldn't handle the job they should have spoken up long before this went into production.

Take a freaking pill, take two even. Apple themselves said that the demand was higher than they expected. Foxconn can and likely has been meeting the contacted amounts based on expected demand. But actual demand is way higher. Apple isn't going to bash them for that, but probably asked if there was any way they could increase output, safely and legally of course since all eyes are watching Apple and Foxconn. But it is not whining, just a statement of truth. Right now there are so many folks wanting iPhone 5s that it is way more than they can produce. So expect to wait.

Of course if Apple would do something to kill off the resellers since they say in their legalese (at least in the US) that they only sell to end users, that might help with the demand issue. They should do the whole Chinese Lotto system everywhere or at least in the major cities with known reseller flooding. Or do no walkins for sure. With this and the new iPads. Then they can systematically cut off folks using many apple IDs from the same computer, many credit cards or the same on many accounts, tons of gift cards across all their accounts etc. and give stores the power to reject sales to folks they know are resellers with backup from Corp.

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A non tech's thoughts on Apple stuff 

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post #39 of 75

A legitimate question is of Apple's willingness to, plans for, or ability to bring more iPhone factories on line. I understand the argument that there are only so many Chinese workers, but....there are hundreds of millions of Chinese workers. Surely tens of thousands, including managers, etc. could be recruited to bring more factories on line.

 

I know it's not an overnight process, but couldn't Apple have anticipated this demand several years ago? And couldn't the new factories kinda copy the template of the existing factories? 

 

In essence, doesn't the failure to do so indicate some sort of supply-chain management problem? Just sayin'....

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post #40 of 75
Quote:
Originally Posted by Constable Odo View Post

Thank you, Tim Cook, for not being able to build a decent supply chain of Apple products. The news media is having a field day and Wall Street believes every word of it. Samsung can supply tens of millions of its smartphones to consumers without a sweat, but Apple struggles. With loss of innovation and a poor supply chain, there's only one direction for Apple to go and that's down.

On the contrary, Apple has a great supply chain for their non essential products. That you might have to wait a couple of more weeks for a phone or baby tablet that isn't a life requirement is a first world problem. You can scream and demand that Apple make more so you don't have to wait but then that means shoving even more workers into those sparse dorms, forcing them to work overtime, while working faster so you have a greater chance of getting a banged up, forgot to set the battery connector all the way or other defective unit. So then you get to make an appointment to get it fixed etc. all because you had to have that non life saving basically a toy today

Now compare this to a co worker whose sister was born with a bone defect in her jaw and has to have reconstructive surgery which requires her jaw be wired shut for six months. Her parents decided to get her an iPad Mini so she can type out messages etc. She really wanted a white one but they were all sold out. So her parents said they would get her a black one now or order a white one online and for that 3 weeks she could use Dad's old first gen iPad. Shelley said order it. She's actually using pen and paper so her brothers can play games on the iPad. If a 14 year old can have patience when for her it could be a life changing device (at least for a time), so can grow ups that don't need it for anything
Edited by charlituna - 11/7/12 at 10:13am

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A non tech's thoughts on Apple stuff 

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