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

Posted:
in iPhone edited January 2014
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.
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Comments

  • Reply 1 of 74
    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.
  • Reply 2 of 74


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

  • Reply 3 of 74
    Apple needs a second supply chain, hopefully American. There demand is growing, it's nearly 2 months and people are still waiting,
  • Reply 4 of 74
    rogifanrogifan Posts: 10,669member
    Foxconn needs to quit whining. If they couldn't handle the job they should have spoken up long before this went into production.
  • Reply 5 of 74


    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

  • Reply 6 of 74
    rogifanrogifan Posts: 10,669member
    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.
  • Reply 7 of 74

    Quote:

    Originally Posted by Rogifan View Post





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




    Effectively, you probably are.

  • Reply 8 of 74
    rogifanrogifan Posts: 10,669member

    Effectively, you probably are.
    How so?
  • Reply 9 of 74


    I doubt if we'll ever get this iPhone in  South Africaimage

  • Reply 10 of 74

    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!

  • Reply 11 of 74

    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

  • Reply 12 of 74

    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. 

  • Reply 13 of 74
    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.... :)
  • Reply 14 of 74

    Quote:

    Originally Posted by smiffy31 View Post


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



     


    Isn't it just.

  • Reply 15 of 74


    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.

  • Reply 16 of 74

    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. 



    Because they are gullible specsperts with no brains.

  • Reply 17 of 74

    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.

  • Reply 18 of 74
    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'.
  • Reply 19 of 74
    lkrupplkrupp Posts: 6,622member
    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.
  • Reply 20 of 74
    With more info, this story could be interesting. As it is, I'm not sure it's a data point
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