Rumor: Apple suppliers solve iMac production problems, strong sales projected

Posted:
in Current Mac Hardware edited January 2014
A new report holds that Apple's component suppliers have solved the production problems keeping stocks of the company's new iMac models low, and Apple will supposedly see strong sales of its signature desktop in the quarter to come.

iMac


The report comes via BrightWire, which cites Taiwanese news source China Times in saying that Apple's Taiwanese component suppliers have improved the assembling conformity rate for the new iMacs, with mass production of the desktops said to have begun in December of 2012. The report expects orders to remain strong throughout the first quarter of 2013, as orders for new products typically peak within the first four months after their launch.

The report runs counter to recent trends, which have seen delivery times for the 21.5-inch iMac slipping to two to three weeks in some areas, suggesting that production problems could still be an issue as late as this week. More recently than that, Apple CEO Tim Cook noted during the company's quarterly conference call that, while Apple was confident it could significantly increase supply, "demand here is very strong and we are not certain that we will achieve a supply-demand balance during the quarter."

Cook cited iMac supply constraints as a major reason for a significant drop in Mac sales for the past quarter. Cook noted during the conference call that figures for other Mac devices were largely in line with analyst projections and that the iMac, along with the shorter quarter and other inventory constraints, largely made up for the shortfall in Mac sales compared to previous quarters.

Analyst Ming-chi Kuo of KGI Securities revealed in August, months before the new iMacs were unveiled, that production issues were likely. It was said that the screen lamination process in building the new desktops is difficult, particularly with the larger 27-inch model.
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Comments

  • Reply 1 of 59


    That is one beaut of a machine. It is as flat as a pancakes and should sell like hot cakes. If it doesn't, it may signal that the public is tuning out the spartan Ive design style.

  • Reply 2 of 59
    phizzphizz Posts: 142member
    Look everybody! We've all got our low price stock now. Let spread some positive rumours and drive the price back up!
  • Reply 3 of 59
    I find it odd timing that this comes out after the earnings call.
  • Reply 4 of 59
    rogifanrogifan Posts: 10,669member
    phizz wrote: »
    Look everybody! We've all got our low price stock now. Let spread some positive rumours and drive the price back up!
    :lol:
  • Reply 5 of 59
    solipsismxsolipsismx Posts: 19,566member
    isteelers wrote: »
    I find it odd timing that this comes out after the earnings call.

    In what way? If you read the internet there is positive and negative news about Apple before and after their earnings call. Since there has been a known shortage doesn't it make sense that the shortage would eliminate as time goes by?
  • Reply 6 of 59
    sflocalsflocal Posts: 5,961member


    My 2009 Quad i7 iMac is still humming along.  I was seriously contemplating buying this new one, but decided to hold off till Haswell comes out.  They are beautiful machines!

  • Reply 7 of 59
    Although iMac sales do affect Apple's bottom line, they are nowhere close to the importance of the iPhone or iPads to overall sales. Thus, suggestion that this story can somehow turn the tide on the stock is far fetched.
  • Reply 8 of 59
    cameronjcameronj Posts: 2,357member
    That's good. Hopefully next time Apple tries to do a massive upgrade of nearly all of its product lines, it will remember to look at a calendar before it does so so it doesn't totally blow the important Christmas shopping season. Then again, I have my doubts that Tim Cook will be the CEO by then. You don't just lose a third of the company's value on your watch, because of choices that you made poorly, and survive it.
  • Reply 9 of 59


    I just got a 27" iMac and, yes, they are just wonderful.  It is amazing how much better the screen is when placed next to my 23" cinema display.  I thought that cinema display was awesome when I got it, what a difference a few years makes.

  • Reply 10 of 59
    vqrovqro Posts: 66member
    Yay! I'm on my way home to grab my 27" iMac that just got delivered. I hope others don't have to wait as long as I did for mine.
  • Reply 11 of 59
    cameronjcameronj Posts: 2,357member
    Although iMac sales do affect Apple's bottom line, they are nowhere close to the importance of the iPhone or iPads to overall sales. Thus, suggestion that this story can somehow turn the tide on the stock is far fetched.

    Not if you consider the fact that roughly 1,000,000 Macs were missing from Apple's earnings this past quarter. That would've given Apple roughly $1.5 billion more of sales, and perhaps $500 million more profit in the quarter. That would be another 3% of revenue, and another approximately 5% profit. Numbers like that would have sure look much better then the numbers that Apple reported. Those numbers work bad, but clearly they were disappointing for a lot of existing shareholders who sold their stock as a result.

    If only Apple didn't have such a large number of flitty individual shareholders, and had more institutional investors that are likely to hold without fear through these fluctuations, maybe it wouldn't have been so bad.
  • Reply 12 of 59
    jragostajragosta Posts: 10,473member
    phizz wrote: »
    Look everybody! We've all got our low price stock now. Let spread some positive rumours and drive the price back up!

    Yet AAPL is down another 1.5%.

    Nothing will make these institutions that are dumping Apple stock happy.
  • Reply 13 of 59


    HUH. HOW INTERESTING. THIS HAPPENED JUST AFTER PEOPLE MADE A CUBIC FECAL KILOMETER OF MONEY ON THE DUMPING OF APPLE STOCK. 

  • Reply 14 of 59

    Quote:

    Originally Posted by cameronj View Post



    That's good. Hopefully next time Apple tries to do a massive upgrade of nearly all of its product lines, it will remember to look at a calendar before it does so so it doesn't totally blow the important Christmas shopping season. Then again, I have my doubts that Tim Cook will be the CEO by then. You don't just lose a third of the company's value on your watch, because of choices that you made poorly, and survive it.


    You see...


     


    The company lost one third because of ignorance rumours fear and (especially) stupidity. I mean... Thanks to cook (if you make the right adjustments) net profit was up 8% and Apple just had the best quarter this world has seen.


     


    This is where you are "one of them" and you lose all credibility. Before registering to this site, everyone should have to make an IQ test and an overall Knowledge-test.

  • Reply 15 of 59
    cameronjcameronj Posts: 2,357member
    jragosta wrote: »
    Yet AAPL is down another 1.5%.

    Nothing will make these institutions that are dumping Apple stock happy.

    The institutions are the only ones that are holding. It's the individual investors who are selling. Why do you think Apple is now almost entirely owned by institutions. It's not because institutions have been selling, it's because they are the on ones who aren't selling.
  • Reply 16 of 59


    This generation came to early. It should have had Retina display and I believe Apple originally wanted this but industry couldn't deliver. Once you use a retina display like rMBP no going back.

  • Reply 17 of 59
    HUH. HOW INTERESTING. THIS HAPPENED JUST AFTER PEOPLE MADE A CUBIC FECAL KILOMETER OF MONEY ON THE DUMPING OF APPLE STOCK. 

    I don't want to be a conspiracy theorist by the timing is indeed ... Shitty
  • Reply 18 of 59


    Originally Posted by jimbo123 View Post

    This generation came to early.


     


    Well, no, it came late. The relevant chips came out almost half a year before the machines did. 






    …I believe Apple originally wanted this but industry couldn't deliver.



     


    I subscribe to this theory, at least partially (if only because I don't remember hearing any rumors about ramp-ups of properly pixeled panels). It certainly makes sense that they would have timed the case redesign with retina, as that's what they did for the laptops. 






    Once you use a retina display like rMBP no going back.



     


    Ain't that the truth… 

  • Reply 19 of 59
    jfc1138jfc1138 Posts: 3,090member


    "Thanks to cook (if you make the right adjustments) net profit was up 8% and Apple just had the best quarter this world has seen."


     


    ^this^

  • Reply 20 of 59
    jragostajragosta Posts: 10,473member
    cameronj wrote: »
    The institutions are the only ones that are holding. It's the individual investors who are selling. Why do you think Apple is now almost entirely owned by institutions. It's not because institutions have been selling, it's because they are the on ones who aren't selling.

    Wrong. Institutions have ALWAYS held massive amounts of AAPL (64% at last count). I'm not aware of any evidence that they've been holding and that private investors are the ones selling. Your evidence is.......?
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