iPhone 7 supply remains constrained, Apple viewed as unlikely to catch up to demand by end...

Posted:
in iPhone edited April 2017
Retail availability of the iPhone 7 -- particularly the jumbo-sized iPhone 7 Plus -- remains in short supply just a week before Black Friday, a new survey has found, suggesting Apple is still struggling to satisfy consumer demand for its latest-generation handset.




Analyst Gene Munster of Piper Jaffray polled 134 U.S. Apple stores and found that just 47 percent of iPhone 7 models were in stock. While the 4.7-inch iPhone 7 has 91 percent availability, just 3 percent of 5.5-inch iPhone 7 Plus models were available in stores.

Supplies are even more constrained in China, where iPhone availability is just 16 percent -- a slight improvement from 12 percent a month ago. There, Piper Jaffray has been tracking online stock from carrier China Unicom.

In contrast, by this point a year ago, the iPhone 6s had reached 100 percent availability at Apple's retail stores. To Munster, this suggests demand for the iPhone 7 series is outpacing last year's iPhone 6s.




As a result, Munster believes it is now unlikely that Apple will reach supply-demand equilibrium by the end of the December quarter, which includes the lucrative holiday shopping season.

AppleInsider reported in late September that initial iPhone 7 availability was restricted by an international freight logjam. Munster's findings correspond with that to some degree -- while overall iPhone 7 model availability stayed at 35 percent from late September to mid October, it jumped to 46 percent by the end of October.

Munster has forecast iPhone unit growth of 3 percent year over year for the December quarter. He also expects that tight iPhone 7 supply at Apple stores is a slight positive sign for the following March 2017 quarter.

Apple has been mum on iPhone 7 sales, opting this year to not reveal opening weekend sales, citing the fact that demand at launch always outstrips available supply. The conclusion of the December quarter will represent the first full quarter of iPhone 7 series sales, giving investors and industry watchers their first indication of how the new models are performing.
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Comments

  • Reply 1 of 26
    512ke512ke Posts: 781member
    Kuo. No. 

  • Reply 2 of 26
    still plays this marketing game? no wonder since the number of sold phones are down YOY
  • Reply 3 of 26
    foggyhillfoggyhill Posts: 4,767member
    johnbear said:
    still plays this marketing game? no wonder since the number of sold phones are down YOY
    WTH game are you talking about?

    Apple is constraining its own supply?
     You are really a class A idiot and should be registered as such.
    roundaboutnowSoligticuscalismiffy31andrewj5790watto_cobrajony0
  • Reply 4 of 26
    qwweraqwwera Posts: 253member
    It would be a great time to introduce the jet white 7. Not only because the sooner the better, but while the 7 is still "new" and the 8 is still a whiles away. it would do more to stir even more interest for the7 than any advertisement. My local news covers anything Apple. Free advertising is the best advertising.
    caliwatto_cobra
  • Reply 5 of 26
    That's our boy; master of the supply chain.
  • Reply 6 of 26
    SoliSoli Posts: 8,461member
    qwwera said:
    It would be a great time to introduce the jet white 7. Not only because the sooner the better…
    And if it's not ready?
  • Reply 7 of 26
    And the great god Kuo commands that Apple is failing with the iPhone 7 and that they won't sell anywhere near the forcasted numbers.
    Yet Wall St will listen to him and mark Apple down.

    Apple need to come out and destroy ihis credibility. It is costing decent investors a lot of money.

    caliwatto_cobra
  • Reply 8 of 26
    APPLE IS PURPOSEFULLY NOT MAKING IPHONES AND NOT SELLING THEM BECAUSE THEY WANT PEOPLE TO THINK THEY'RE SELLING WELL!!! THAT WAY PEOPLE HAVE TO WAIT FOR THE PHONE THEY WANT AND MIGHT GO ELSEWHERE!!!  THIS IS A DIABOLICAL MARKETING STRATEGY, AND THE IPHONE IS ACTUALLY FAILING AND APPLE IS DOOOOOOOOOOOOOOOOMMMMEEEEEDDDDD!!! /heavy, heavy sarcasm
    caliSoliwatto_cobrajony0
  • Reply 9 of 26
    Worth the wait. It took me almost a month to get my 7plus 128g black, and coming from a 5s (which is still a great phone in itself) it exceeded my expectations in how capable, speedy, beautiful, and premium the entire product is. I'm sure that word of mouth advertising is having an effect on the demand of this bad ass beast. 
    And I would recommend the leather cases made by Apple, they are beautiful and the tactile aspect gives it such a great feel. Yes I spent $1,000 out of pocket for the Sim free phone and case, but I'm not having any regrets.
    edited November 2016 caliwatto_cobra
  • Reply 10 of 26
    Can someone explain the difference between SIM free and unlocked? Aren't both still restricted to specific carriers based on the Cell radio tech they have?
  • Reply 11 of 26
    lmagoo said:
    Can someone explain the difference between SIM free and unlocked? Aren't both still restricted to specific carriers based on the Cell radio tech they have?


    No, the SIM free version can be used on any carrier- CDMA or GSM. The "unlocked" T-Mobile or ATT can only be used on GSM networks and the Verizon can only be used on CDMA. 

    The wireless LTE modems are are also faster in the Sim free and Verizon models compared to the T-Mo ATT version, as reported on AI last month.
  • Reply 12 of 26
    I ordered my 7 plus jet black 128 a day after launch and still have not received it ! through my carrier online store!
  • Reply 13 of 26
    tyler82 said:
    lmagoo said:
    Can someone explain the difference between SIM free and unlocked? Aren't both still restricted to specific carriers based on the Cell radio tech they have?


    No, the SIM free version can be used on any carrier- CDMA or GSM. The "unlocked" T-Mobile or ATT can only be used on GSM networks and the Verizon can only be used on CDMA. 

    The wireless LTE modems are are also faster in the Sim free and Verizon models compared to the T-Mo ATT version, as reported on AI last month.
    That's incorrect. The Verzion iPhone is the same thing as the SIM free version. Both support GSM and CDMA networks. 
  • Reply 14 of 26
    Hopefully Apple begin production earlier for the iPhone 8. 
  • Reply 15 of 26
    subbies said:
    Hopefully Apple begin production earlier for the iPhone 8. 
    Not if they have to make it in the USA as directed by Drump.
    The next iPhone update will be sometime in 2019.

    Apple will truly be doomed if this happens
  • Reply 16 of 26
    512ke said:
    Kuo. No. 

    Don't you mean "Hell, no, we won't Kuo!"  :D
  • Reply 17 of 26
    g-newsg-news Posts: 1,107member
    Another iPhone, another artificial supply shortage. I waited for my SE for three months. Tim and his supply chain mastery. My ass.
  • Reply 18 of 26
    subbies said:
    Hopefully Apple begin production earlier for the iPhone 8. 
    Not if they have to make it in the USA as directed by Drump.
    The next iPhone update will be sometime in 2019.

    Apple will truly be doomed if this happens
    He'd have to put massive tarrifs on everything for Apple to make that decision,
    then Apple would need to built up a massive manufacturing operation in the US itself (or have Foxconn invest in a place were it has not done so)
    We're talking tens of billions of investment for the dubious payback of reproducing less efficiently something already being done expertly elsewhere.
    If they do this, it would be very highly robot driven and likely built in California (say near Los Angeles) anyway. The rust belt would not get it/
    The reason the rust belt lost its jobs are many, there is no easy way to get those back there.

    All of this would lead to crippling not just Apple but almost every other tech firms too
    as retaliatory tariffs would occur on those US made phones when they are exported
    Cause, you know the countries, companies targeted by these things would not take all of this lying down..

    Considering that final assembly is just a very small part of the expenditure on the phone, the actual needed investment would likely be even higher.
    Not only that, needing everything to be built in the US massively constrains your supply chain, decreasing competition which increases both costs, risk and decreases innovation (because those companies are now protected).

    The economic chaos would be huge for very little benefits.

    Apple would not be paying barely educate people in the rust belt minimum wage for highly technical work done within less than 2 years, or even 4 years.
    Considering much of the components that needs to be assembled would likely be hit by tariffs, how the hell would Apple go around doing that!

    The fact Apple needs massive ramping up, ramping down of manufacturing capacity, with people then being out of work for months; were would those people come from?


    Protectionism worked so well in the late 1920s early 1930s.... So god damn well!

    The fact much of the money from Iphones sold in the US pay for the salary of US engineers and is distributed to US investors, the likely result of all this mess would be weakening Apple immensely and making the US much poorer.

    edited November 2016 watto_cobra
  • Reply 19 of 26
    calicali Posts: 3,495member
    subbies said:
    Hopefully Apple begin production earlier for the iPhone 8. 
     This means they'll  also have to end production earlier.  
  • Reply 20 of 26
    If Gene Munster did this survey on inventory most likely its WRONG, His track record with Apple info is the worst.
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