iPhone 5 capacity improving, Apple forecast to sell 46.5M phones in Dec. quarter

Posted:
in iPhone edited January 2014
Despite recent comments from Foxconn admitting difficulty in manufacturing the iPhone 5, there are reportedly signs that Apple's capacity is "much improved."

Shaw Wu of Sterne Agee revealed in a note to investors on Thursday that his checks within Apple's supply chain have found that Apple has significantly improved its iPhone 5 production capacity since the device first launched in late September.

With supply constraints of the iPhone 5 expected to ease, Wu believes Apple will sell 46.5 million total iPhone units in the company's December quarter. That would be a major quarter-over-quarter increase from the 26.9 million iPhone units Apple shipped in the preceding September quarter.

Wu's analysis was issued in response to comments from Foxconn Chairman Terry Gou, who revealed this week that his company has struggled to produce the iPhone 5 for Apple. He admitted that his company has been "falling short of meeting the huge demand."

According to Wu, the supply chain bottleneck for the iPhone 5 has since moved from components to the assembly of the device itself.

iPhone 5


Reports have claimed that the iPhone 5's in-cell touch panel and aluminum chassis have caused quality control issues for both Apple and Foxconn. One unnamed source from Foxconn said in October that the iPhone 5 is "the most difficult device" the company has ever been tasked with assembling.

Last week, a poll of U.S. carriers found that iPhone 5 constraints still exist at Verizon and AT&T, America's two largest wireless providers. However, it was also discovered that supply of the iPhone 5 was increasing at Sprint, the third-largest carrier in the nation.
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Comments

  • Reply 1 of 34
    solipsismxsolipsismx Posts: 19,566member
    Good luck catching that number, Samsung.
  • Reply 2 of 34


    Cook has to figure out how to ramp up production to squeeze more than 50 million iPhone 5s into users hands.


     


    Not that 46 million phones is a small number by any means but that includes all iPhones.

     

  • Reply 3 of 34
    obamaobama Posts: 62member


    Yeah, go Apple.


     


    I'm still waiting for my iPhone 5 to arrive.  


     


    Like normal people would really say, "Gee, I could get a Samsung phone right now, but I would rather wait a month for an iPhone."

  • Reply 4 of 34
    aaarrrggghaaarrrgggh Posts: 1,582member
    I wonder if availability will drive up sales of the 64GB version, and thus the ASP. 16GB just doesn't cover a limited set of music (4GB), photos, and apps for me; it is surprising that the ASP has traditionally been right at $630.
  • Reply 5 of 34


    Originally Posted by SolipsismX View Post

    Good luck catching that number, Samsung.




    I think they can smoothly see their way to lying about the number of phones they sold, just like every other quarter.

  • Reply 6 of 34
    ifij775ifij775 Posts: 470member


    I think this is the same number Shaw Wu was predicting back in Sept, so apparently he hasn't changed his estimate. I guess he thinks the capacity issues are much ado about nothing.

  • Reply 7 of 34
    solipsismxsolipsismx Posts: 19,566member
    aaarrrgggh wrote: »
    I wonder if availability will drive up sales of the 64GB version, and thus the ASP. 16GB just doesn't cover a limited set of music (4GB), photos, and apps for me; it is surprising that the ASP has traditionally been right at $630.

    I returned my 64GB for a 16GB model + iTunes Match and still have more than half my free space remaining. Really it was a dumb move on my part (should have just kept the 64GB after I made the purchase) but that's another story.
  • Reply 8 of 34


    Interesting to note from article where their bottlenecks were. I had assumed, given the reported altercations at some Foxconn assembly plants, that the bottleneck was in the final assembly. But this article says they were having component supply problems. Quite a difference and would mean that the prior bottlenecks would be amendable to standard quality control tasks such as tolerances, temperature, chemical, material purity, etc of automated assembly systems, and the solutions would be in hands of highly skilled scientists and engineers.


     


    Final assembly woes would be quite different, and would be constrained by human tolerances, and less amenable to control by engineering. 

  • Reply 9 of 34
    irelandireland Posts: 17,645member


    For a company doing SO WELL, AAPL is getting hammered on the stock market as of late. It's a joke.

  • Reply 10 of 34


    Panic is created by short term goal of investors to milk as much profit as they can. If you have long term view Apple is fantastic investment. Apple is creative company and they will never ruin value of brand by simply competing with price or volume. 2013 will be another sucessful year for Apple. They did not NFC for a reason. One of the major issue with current NFC technology is security. Once Apple integrate multi layer security technology to iDevices pastic car or checkbook will become thing of past. Hang in there for a while.

  • Reply 11 of 34


    Panic is created by short term goal of investors to milk as much profit as they can. If you have long term view Apple is fantastic investment. Apple is creative company and they will never ruin value of brand by simply competing with price or volume. 2013 will be another sucessful year for Apple. They did not included NFC so far for a reason. One of the major issue with current NFC technology is security concern. Once Apple integrate multi layer security technology to iDevices plastic card or checkbook will become thing of past. Hang in there for a while.

  • Reply 12 of 34
    irelandireland Posts: 17,645member

    Quote:

    Originally Posted by Apple1000 View Post


    Panic is created by short term goal of investors to milk as much profit as they can. If you have long term view Apple is fantastic investment. Apple is creative company and they will never ruin value of brand by simply competing with price or volume. 2013 will be another sucessful year for Apple. They did not included NFC so far for a reason. One of the major issue with current NFC technology is security concern. Once Apple integrate multi layer security technology to iDevices plastic card or checkbook will become thing of past. Hang in there for a while.



    K, thanks.


     


    iTV :-)

  • Reply 13 of 34
    charlitunacharlituna Posts: 7,215member
    There is a lot of whooey in these articles. The plants can make what they can make. Period. Apple doesn't stockpile for months before a launch for a variety of reasons. Maybe say a month's production output. Lets say a month can give us 25 million units. If there are 30 million folks that want the iPhone at launch that's a supply issue. The talk about how complex the iPhone is to build is just Foxconn shutting up naysayers who simply respond that they need to make more phones. As the man said, Foxconn can't change the laws of physics. Not unless folks want slapped together stuff. Which they don't so they need to chill about this totally first world issue

    The supply is getting better because all those folks that had to have the iPhone now have it but the production capacity is still as high.

    Same game is and will play with the iPads, 13 inch rMBP, iMacs etc
  • Reply 14 of 34
    charlitunacharlituna Posts: 7,215member
    obama wrote: »

    Like normal people would really say, "Gee, I could get a Samsung phone right now, but I would rather wait a month for an iPhone."

    A lot of them do say that, which is great for Apple
  • Reply 15 of 34
    steven n.steven n. Posts: 1,123member

    Quote:

    Originally Posted by Ireland View Post


    For a company doing SO WELL, AAPL is getting hammered on the stock market as of late. It's a joke.



    Didn't you here?  Steve Jobs died and he alone invented and innovated every single thing Apple did.  Not a single person in the company had a concept of design but him so Apple will never ever again be able to come out with a new product.


     


    That is the logic in Wall Street right now.  The sad part is, I expect between 70-90 million iOS devices for the December quarter and Wall Street will see that as a failure.  The P/E will drop to 9 or so while AMZN will go into the undefined P/E range (posting a total loss for the 4 preceding quarters) and their stock will sky-rocket on the news.


     


    Go figure.

  • Reply 16 of 34
    aaarrrggghaaarrrgggh Posts: 1,582member
    solipsismx wrote: »
    [

    I returned my 64GB for a 16GB model + iTunes Match and still have more than half my free space remaining. Really it was a dumb move on my part (should have just kept the 64GB after I made the purchase) but that's another story.

    64 is "too much," but 16 seems way too low-- but everybody's needs are different. Do you replace every year-- that is about the only justification I could make for the smaller size.
  • Reply 17 of 34
    aaarrrggghaaarrrgggh Posts: 1,582member
    ireland wrote: »
    For a company doing SO WELL, AAPL is getting hammered on the stock market as of late. It's a joke.

    Should I even try to use history as a basis for not jumping? Traditionally AAPL is down faster than the market, and jumps back while the bad companies are still falling.

    Who made the comment about Zacky and his prediction (Zacky says $1000 so he said $500)? Looks like it might come true, although I expected a capitulation at $550.
  • Reply 18 of 34

    Quote:

    Originally Posted by Apple1000 View Post


    Panic is created by short term goal of investors to milk as much profit as they can. If you have long term view Apple is fantastic investment. Apple is creative company and they will never ruin value of brand by simply competing with price or volume. 2013 will be another sucessful year for Apple. They did not NFC for a reason. One of the major issue with current NFC technology is security. Once Apple integrate multi layer security technology to iDevices pastic car or checkbook will become thing of past. Hang in there for a while.



    I doubt security of NFC is a problem. NFC has a very short distance (4cm or less), so one is protected from distant hacking. A key reason for Apple is the need to add a third antenna, acting as an induction coil. As an antenna, the amount of wire required is 11m. I wouldn't be surprised if Bluetooth 4 is being pushed as an alternative to current NFC/RFID.


     


    Another reason NFC was not in the iPhone 5 is the technology is not ubiquitous and there are still battles raging within NFC creating multiple incompatible NFC protocols -- a betamax vs VHS battle -- who's going to win?

  • Reply 19 of 34
    The Han hoi guy only said it Is hard to make iPhone 5 but he didn't reveal the actual number . I can say they can make 1 million iPhone 5 a day but it is still hard and not meet Apple requested demand.

    It is meaningless and waste of time to feel panic if no actual numbers are revealed .
  • Reply 20 of 34
    drblankdrblank Posts: 3,383member
    Add the 6 Million they sold in Sept and you end up with 52 Million units sold in the same time period as Samsung sold about 30 Million. Hmm. And Apple still hasn't opened up all of their markets and is STILL trying to keep up with demand.
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