Source: Apple Watch will see constraints at launch, but reports of late production issues overblown

Posted:
in Apple Watch edited March 2015
Rumors of production issues before a new Apple product launch are par for the course, and the Apple Watch has proven no different. But a source has indicated to AppleInsider that while there may be some supply issues for the debut of the Apple Watch, they are not unexpected and the company is prepared for them.




Yield and manufacturing issues are common during the ramp-up in development of any Apple product. When the iPhone 6 and iPhone 6 Plus debuted last year, Apple struggled to keep up with consumer demand for months.

That may happen again with the Apple Watch. One person familiar with Apple's internal logistics shared this week that with all of the new technology introduced in the Apple Watch, the company has faced production issues with the wrist-worn device "at every stage of the development."

This person said that while there may be some yield issues at launch, they're not new and are not a surprise to Apple's top brass.
A source indicated to AppleInsider that the Apple Watch has faced production issues "at every stage of the development."
As a result, it's expected that there will be a shortage of the Apple Watch at launch. But this person said the shortage is largely expected by Apple management, who knew the struggles the company might face in coming to market.

In particular, the Apple Watch features an OLED display -- the first-ever device from the company to utilize the technology. The stainless steel Apple Watch and luxury edition model also feature scratch-resistant sapphire, while all three models, including the Sport, feature the all-new Digital Crown and heart rate monitor.

With so much technology packed into such a small device, production issues leading up to launch should come as no surprise.

The new details come on the heels of a new, dubious report out of the Far East that claimed Apple could be facing yield rates of less than half in initial production of the Apple Watch. However, although Apple may indeed be facing yield rates lower than it would prefer, it seems highly unlikely that a company with the manufacturing prowess of Apple would see yield rates as low as 30 percent, as was rumored.

Consumers will first be able to try out the Apple Watch on their wrists beginning April 10 at the company's retail stores, when preorders begin. The Watch will officially launch two weeks later, on April 24.
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Comments

  • Reply 1 of 64

    When you release products with such high demand and hype you will always meet a supply constraint as production yields take 12-18 months to develop properly.  You always run into unforeseen circumstances no matter how well you plan and execute...

  • Reply 2 of 64
    It's probably just as well that Apple have severe problems making this watch, as sales will be so low.

    I wish it were not so, but the matter is out of my hands.
  • Reply 3 of 64
    pscooter63pscooter63 Posts: 1,067member
    Quote:
    Originally Posted by Benjamin Frost View Post



    ...the matter is out of my hands.

     

    Thank heavens for that.  There would be no AAPL to own if it weren't, because your poor judgment would drive the whole corporation into the ground in a matter of mere hours.

  • Reply 5 of 64
    One of the few things in life you can rely on, every iPhone, every iPad there's always an apple insider article shortly before the release regarding rumours of short supply to help generate the hype.
  • Reply 6 of 64
    mstonemstone Posts: 11,510member

    Last February Apple published a report about reducing their use of conflict minerals. Does anyone know if they have released a report for 2015? I'm wondering where they sourced their gold from for the new watch.

  • Reply 7 of 64
    boredumbboredumb Posts: 1,418member
    Quote:

    Originally Posted by mstone View Post

     

    Last February Apple published a report about reducing their use of conflict minerals. Does anyone know if they have released a report for 2015? I'm wondering where they sourced their gold from for the new watch.


    I donated my fillings...

  • Reply 8 of 64
    gatorguygatorguy Posts: 23,508member
    Gosh, that was a particularly fast response to a rumor.
  • Reply 9 of 64
    slurpyslurpy Posts: 5,362member
    Quote:
    Originally Posted by Benjamin Frost View Post



    It's probably just as well that Apple have severe problems making this watch, as sales will be so low.



    I wish it were not so, but the matter is out of my hands.

     

    You still haven't responded as to why you still own Apple stock, when you're so down about every single aspect of the future of the company. No sane investor would keep their stock with your views. So are you lying about your claims of being a shareholder? And if so, why would you lie about that? 

  • Reply 10 of 64
    SpamSandwichSpamSandwich Posts: 33,407member
    Quote:
    Originally Posted by Slurpy View Post

     

     

    I seriously have no clue how you're still allowed to post here. Seriously, you have like 6,600+ posts of this kind of troll trash. You'd think after 5,000 or so the mods would get the hint. 

     

    You've also been caught in at least a dozen lies, all made for the sake of trolling. And you still haven't responded as to why you still own Apple stock, when you're so down about every single aspect of the future of the company. No sane investor would keep their stock with your views. So are you lying about your claims of being a shareholder? And if so, why would you lie about that? 




    Maybe the mods have determined that Frost's posts are good for clicks? He stirs things up (thankfully, no longer for me since I've blocked him) and gets people angry enough to respond...

     

    IMO, the best course to take is block and ignore.

  • Reply 11 of 64
    nobodyynobodyy Posts: 377member
    Quote:

    Originally Posted by mstone View Post

     

    Last February Apple published a report about reducing their use of conflict minerals. Does anyone know if they have released a report for 2015? I'm wondering where they sourced their gold from for the new watch.




    oooooo I hadn't thought about that. I don't think they have released a report for 2015, yet, but I would assume they wouldn't shy away from it this time around. 

     

    Had they released a report, I think it may have been too early for the sourcing of the Watch materials to make it on the list, so maybe purposely pushed back?

  • Reply 12 of 64
    dickprinterdickprinter Posts: 1,060member
    It's probably just as well that Apple have severe problems making this watch, as sales will be so low.

    I wish it were not so, but the matter is out of my hands.



    You're right, it's so far out of your hands (and your realm of knowledge) that you aren't even qualified to make a sales prediction.
  • Reply 13 of 64

    Uh, whatever to all these comments so far. Any idea what time we can actually preorder on the 10th? Midnight PT?

     

    ...I guess this question is a little ironic...

  • Reply 14 of 64
    slurpyslurpy Posts: 5,362member
    Quote:

    Originally Posted by sog35 View Post

     

     

    Slurpy, please just ignore Frost.  

     

    The life blood of a troll is people replying to him. I'm going to try my hardest to ignore him.  It is hard with all the BS he spews but its really the only way to shut him down.


     

    I might agree with you, except for the fact that he has 6,600+ posts, so I don't see any scenario where he would shut himself down, unless he's banned. This is a relentless troll that tries his best to destroy every thread he enters, spewing the same garbage over and over. I ignored him for his first few thousand posts, but when I saw the mods did not take action after unequivocal evidence that he's nothing but a 2 bit troll with no interest in any kind of honest discussion, I couldn't continue letting all his glib lies and trash go unanswered. 

  • Reply 15 of 64
    Any report on yields should be considered, at best, as dubious.

    Excepting top management at both Apple and the supplier, nobody knows the exact terms of supply contracts, i.e.., units to be produced, acceptable reject rate, etc. Further, volume targets and reject rates are date driven, i.e.., the acceptable run rate as of March first would be lower than the acceptable run rate as of April first.

    Supply contracts at Apple's level are complex, covering many factors AND SUPPLIERS for the same component.. There are just too many variables in these contracts for anybody, short of top management, to have sufficient knowledge of what is being supplied against contractual agreements.

    When you factor in that these reports of component production issues are always followed by record breaking actual results, my guess is that these rumors are generated by Apple centric bloggers in order to drive eyeballs to their respective sites. Its easy to do: one blogger quotes an "anonymous" source (his/her Ouija board), and every other blogger reports on that article. Nobody's initial report is followed up on, holding the original blogger accountable for a bogus article.
  • Reply 16 of 64
    nobodyynobodyy Posts: 377member
    Quote:

    Originally Posted by Slurpy View Post

     

     

    I might agree with you, except for the fact that he has 6,600+ posts, so I don't see any scenario where he would shut himself down, unless he's banned. This is a relentless troll that tries his best to destroy every thread he enters, spewing the same garbage over and over. I ignored him for his first few thousand posts, but when I saw the mods did not take action after unequivocal evidence that he's nothing but a 2 bit troll with no interest in any kind of honest discussion, I couldn't continue letting all his glib lies and trash go unanswered. 


     

    I at least get a kick out of reading his post history. 

     

    Literally, I will open Frost's "All Posts" and just read random pages of posts. It's especially funny when it's out of context and not a thorn in your side when trying to have a nice discussion. 

  • Reply 17 of 64
    mac_128mac_128 Posts: 3,454member
    yawnbros wrote: »
    there's always an apple insider article shortly before the release regarding rumours of short supply to help generate the hype.

    But that's a good thing right? There's no such thing as bad press ... The worst that could happen is the stock dips, I pick up more at a lower price and reap the rewards after the watch starts selling.

    Lines around stores to ensure early adopters get one that may be in short supply, and that makes for great news coverage. The general public doesn't know all the behind the scenes reasons, they just see people who want the watch which translates to huge demand and short supply. It doesn't matter why
  • Reply 18 of 64
    adrayvenadrayven Posts: 460member
    Quote:

    Originally Posted by SpamSandwich View Post

     



    Maybe the mods have determined that Frost's posts are good for clicks? He stirs things up (thankfully, no longer for me since I've blocked him) and gets people angry enough to respond...

     

    IMO, the best course to take is block and ignore.




    No, he's a paid employee who's job is to rial and pick on people.. seriously.. it's his full time job.

  • Reply 19 of 64
    mstonemstone Posts: 11,510member
    Quote:

    Originally Posted by sog35 View Post

     

     

    seriously don't waste your time replying to Frost.  The best thing to do is ignore him.  I've been responding to him the last few weeks and its an utter waste of time.  He is a flat out troll and just wants a negative response from people


    What we need is feature that when people quote someone on your block list, the nested comments get blocked too. I wrote a javascriptlet to do that, but it only works locally on my machine. It needs to be implemented at the server. 

  • Reply 20 of 64
    brlawyerbrlawyer Posts: 828member
    It's probably just as well that Apple have severe problems making this watch, as sales will be so low.

    I wish it were not so, but the matter is out of my hands.

    Absolutely correct. Yields or not, I am not buying that piece of fugly anyway.
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