iPhone X supply constraints limit Apple's production to less than 10,000 units per day

Posted:
in iPhone edited September 2017
Mass production of the iPhone X faces significant challenges ahead of launch, particularly for the gold model, with new technology limiting Apple to producing less than 10,000 units per day, according to analyst Ming-Chi Kuo.




Kuo, of KGI Securities, issued a note to investors on Monday, a copy of which was obtained by AppleInsider, warning that the iPhone X "will remain in severe short supply for awhile."

In addition to general production issues, he also believes that the new "blush" gold shade will face its own, specific problems in manufacturing. He said that the gold iPhone X will be in extremely low volume at launch, and could even go on sale at a date later than the other models, expected to be offered in black and white options.

However, Kuo said that any shipment delays will have a limited effect on Apple's stock, as well as shares of its suppliers. Simply put, Apple will still sell the same amount of phones, just at a later date.

For Kuo, the main question leading into Apple's event on Tuesday is whether the new facial recognition technology is capable of winning over consumers. Specifically, he questioned how well the new Face ID feature will replace Touch ID.

"Apple has to win over consumers by demoing a smooth-running, easy-to-use and secure feature," Kuo said.




With expectations for the OLED iPhone X at a fever pitch, how the market reacts to the 3D sensing forward facing cameras will be a "big factor" for how shares of Apple perform, he said.

"If market opinions are mixed after the media event, then we'll have to wait until shipments begin to see if consumers like what the OLED iPhone has to offer," he said.

Monday's report gave no indication of the timeline for launch of the iPhone X. It's expected that the LCD-screened iPhone 8 and iPhone 8 Plus will make their way into the hands of consumers next Friday, Sept. 22, but the iPhone X could launch at a later date due to the aforementioned production issues.

Though last-minute leaks have seemingly spoiled all of the surprises, all will be revealed on Tuesday when Apple hosts an event at the Steve Jobs Theater in Cupertino, Calif. Beyond the iPhone X and iPhone 8, the company is also expected to unveil a new Apple Watch with LTEstreaming 4K-resolution content with high dynamic range colors.

AppleInsider will be at the event live with coverage and analysis. The announcement begins at 10 a.m. Pacific, 1 p.m. Eastern, and readers can install the AppleInsider app for iOS to get push notifications for news as it breaks.
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Comments

  • Reply 1 of 60
    Trying to buy an iPhone X at sale time is going to be brutal, and it's bad enough normally
    SnickersMagoo
  • Reply 2 of 60
    Now we’re getting daily pronouncements from Kuo? Good grief.
    gregg thurman
  • Reply 3 of 60
    The black market for these will be huge. Who is ready to pay $3,000 and up to get one? ;)
  • Reply 4 of 60
    I really wish these sites would ignore this guy, I don't think he has an special insight to anything.. he's like a stopped clock, he gets it right a couple times and that about it.
    SpamSandwichgregg thurman
  • Reply 5 of 60
    SoliSoli Posts: 8,966member
    ^^^ Irony ^^^
    retrogustojSnivelyradarthekatpscooter63anantksundaramwaverboy
  • Reply 6 of 60
    The attempted stock manipulation that has been running overtime since last week is unreal.
    gregg thurman
  • Reply 7 of 60
    Samsung failed in this project with its obsolete crappy OLED tech, with only 60% yield, and now is using Kuo and alikes to divert focus from itself to others. If the X doesn't sell, this is Samsung that will be harmed, not Apple.

    edited September 2017
  • Reply 8 of 60
    Rayz2016Rayz2016 Posts: 4,631member
    This happens at every launch of every product.

    I have yet to be convinced that Ol' "Well-connected' is the omniscient tech analyst Demi-god that AI thinks he is. 
    gregg thurmanStrangeDayspscooter63anantksundaram
  • Reply 9 of 60
    Rayz2016Rayz2016 Posts: 4,631member
    Soli said:
    ^^^ Irony ^^^
    I'm still laughing at the idea that Sog35 has "sources". 

    Can't imagine what that looks like. 
    edited September 2017 tmayoseameStrangeDaysradarthekatanantksundaramwaverboy
  • Reply 10 of 60

    right... Lets see if Kuo is short selling or doing some of his "magic" (sic) for someone who is.

    That's what happens when you built a con man up, he's then empowered to do some real damage.

    Prove to me that this guy is not a criminal that shouldn't be investigated by the SEC.

    Just the timing of this so called "leak" proves he's a sac of crap and that everything he does is in the service of stock manipulation.

    BTW, on these kind of info, he's batting near zero... But, hey no worries, someone will tell me he's a oracle and "well connected".
    edited September 2017 StrangeDaysjax44
  • Reply 11 of 60
    Samsung failed in this project with its obsolete crappy OLED tech, with only 60% yield, and now is using Kuo and alikes to divert focus from itself to others. If the X doesn't sell, this is Samsung that will be harmed, not Apple.

    There's no question this special phone will sell. It'll sell out on the first day.
  • Reply 12 of 60
    slurpyslurpy Posts: 5,154member
    sog35 said:
    My sources say otherwise.

    Believe Kuo with caution.  He has been wrong about many things.

    My sources said the flagship iPhone would be called iPhoneX.  I said that LAST YEAR.

    My sources are saying the 'shortage' of iPhone X will be nothing unordinary.  Same shortages the iPhone 6 Plus had.

    10,000 units a day is a ridiculous number, used to strike fear in Apple shareholders. IGNORE.

    Right. You don't have any fucking sources. "iPhoneX" was rumored a long time ago (along with other names), the X has been a monicker of a special edition or high end products since forever. Your lies and constant self-embellishment are truly embarrassing. 
    SoliargonauttmayStrangeDaysradarthekatpscooter63fastasleepwaverboy
  • Reply 13 of 60
    Samsung failed in this project with its obsolete crappy OLED tech, with only 60% yield, and now is using Kuo and alikes to divert focus from itself to others. If the X doesn't sell, this is Samsung that will be harmed, not Apple.

    There's no question this special phone will sell. It'll sell out on the first day.
    Let's hope so... I am not qualified to discuss philosophies of sales, I just remember the forums before and after the launch of a new MBP and I see that the enthusiasm this matter creates is as dry as a bone in the desert. Let's hope that changes after the launch.
    edited September 2017
  • Reply 14 of 60
    sog35 said:
    slurpy said:
    sog35 said:
    My sources say otherwise.

    Believe Kuo with caution.  He has been wrong about many things.

    My sources said the flagship iPhone would be called iPhoneX.  I said that LAST YEAR.

    My sources are saying the 'shortage' of iPhone X will be nothing unordinary.  Same shortages the iPhone 6 Plus had.

    10,000 units a day is a ridiculous number, used to strike fear in Apple shareholders. IGNORE.

    Right. You don't have any fucking sources. "iPhoneX" was rumored a long time ago (along with other names), the X has been a monicker of a special edition or high end products since forever. Your lies and constant self-embellishment are truly embarrassing. 
    Wrong.

    The last 3 months the whole tech media and tech analyst have been calling it iPhone8.  I have stuck to iPhone X since LAST YEAR.

    And watch your tone. 

    Actually, when it came know there was 3rd model for 2018 the two names the rumor makers put forward was X or Pro and you were not one of the rumor makers. Then followed the Anniversary and the 8 names. Just because you like the "X"  better than any other name does not mean you new what they were going to. I am will to bet Apple had many internal discussion about what the name convention was going to be and this what we saw leaking out, the back and forth analysis was doing on the naming.
    StrangeDaysradarthekat
  • Reply 15 of 60
    Is everyone so desperate to dismiss any supposed derogatory news about Apple that they haven't read up to the fourth paragraph where he says any delays will have limited effect on Apple stock so not really trying to manipulate stock down and not doing a good job if he is
  • Reply 16 of 60
    Rayz2016Rayz2016 Posts: 4,631member
    sog35 said:
    foggyhill said:

    right... Lets see if Kuo is short selling or doing some of his "magic" (sic) for someone who is.

    That's what happens when you built a con man up, he's then empowered to do some real damage.

    Prove to me that this guy is not a criminal that shouldn't be investigated by the SEC.

    Just the timing of this so called "leak" proves he's a sac of crap and that everything he does is in the service of stock manipulation.

    BTW, on these kind of info, he's batting near zero... But, hey no worries, someone will tell me he's a oracle and "well connected".
    I've been saying this for years:

    Apple should send some 'security professionals' to make a visit to Mr Kuo at his office and his home.

    Of course nothing illegal or criminal.  But just to let Kuo know that Apple is watching. And make Kuo 'feel' Apple's presence.

    Apple should really hire an independent security staff to run some 'operations' on these rogue analysts. 
    Is … er … is anyone else reading what I'm reading here?

    This bloke's suggesting that Apple should hire a crack squad of ex-SAS enforcers to put the frighteners on finance geeks. 

    Yes, there's absolutely no way on earth that would ever become a fatal PR disaster. 

    Talk sense, man!
    edited September 2017 StrangeDaysmuthuk_vanalingam
  • Reply 17 of 60
    jdgazjdgaz Posts: 357member
    I look forward to reality being brought to bear on this subject tomorrow at 10AM Pacific time.
  • Reply 18 of 60
    Wanted: iPhone X
    Willing to trade 2 Nintendo Classic Mini + cash     /s

    Funny how this supply and demand thing works.
  • Reply 19 of 60
    bobby88 said:
    Is everyone so desperate to dismiss any supposed derogatory news about Apple that they haven't read up to the fourth paragraph where he says any delays will have limited effect on Apple stock so not really trying to manipulate stock down and not doing a good job if he is
    Gimme a break, it's transparent that this is for a short sell. He had this info (if it is even real) for likely months.
    The bland crap at the end is just backside cover.

    He timed it for it to have the most effect cause once real info gets out his words are worth nothing again for a long time.


    pscooter63
  • Reply 20 of 60
    bobby88 said:
    Is everyone so desperate to dismiss any supposed derogatory news about Apple that they haven't read up to the fourth paragraph where he says any delays will have limited effect on Apple stock so not really trying to manipulate stock down and not doing a good job if he is
    He doesn't deal with Apple's stock. His concern is Samsung's stock.
    pujones1
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