Supply chain suggests Apple will only get half of the iPhone X deliveries it wants in 2017...

Posted:
in iPhone
New reports from unnamed supply chain sources claim that difficulty in production of the Face ID sensor suite has held up production of the iPhone X so much, that Apple is only going to get about 20 million units delivered before the end of 2017.




The Nikkei Asian Review claimed in a report on Tuesday that "problematic parts" associated with Face ID are the culprit to fewer iPhone X for fiscal year 2017. The report goes on to claim that OLED problems were wrapped up in July, with the face authentication system causing supply problems after that.

The account also alleges that improvements in yield of the sensors only increased towards the end of September. As a result, the unit is being produced at a rate of 10 million units per month -- which leads towards the Nikkei Asian Review's prediction of 20 million.

However, the number seems to assume that Apple has only in the last few days started cranking out that volume, leading to that 20 million number. Other reports from the supply chain in recent days have suggested that while the Face ID sensor was the culprit of slower than expected production, and that the issues were resolved in late September, Apple's manufacturers are expected to crank out 30 million to 35 million units before the end of 2017 -- which makes more sense from a mathematical standpoint.

The publication gave itself an out, however. The report claims that Apple has already started negotiations with other manufacturers for "certain parts," and notes that there is a possibility that output volumes could increase rapidly.

It is not clear how the constraint expected on the iPhone X will compare to the shortages of the iPhone 7 Plus at launch -- which was reportedly held up by the dual-camera assembly.

Apple's iPhone X debuted on Sept. 12 and has a 5.8-inch Super Retina OLED display, the A11 Bionic processor, and the apparently hard-to-produce 3D-sensing TrueDepth camera at the core of the Face ID technology. The device ships Nov. 3, and starts at $999 without any promotions.

Comments

  • Reply 1 of 11
    Oh look another one of these supply chain issue, every single year it seems like the same issues pop up. I think by now these should be seen as normal and regular for any company pumping out numbers like apple.
    edited October 2017 StrangeDays
  • Reply 2 of 11
    thrangthrang Posts: 783member
    These reports are like someone looking at an empty toilet bowel, trying to imagine the size of a future turd while then speculating what may have been digested to get to that thought experiment, while nonetheless expecting that the first plop may be very different.


    kevin kee
  • Reply 3 of 11
    Usual FUD.
  • Reply 4 of 11
    Base on my supply chain check, there will be iPhone X available sooner or later. Yup, that’s about right. I think I got perfectly right.
  • Reply 5 of 11
    MacProMacPro Posts: 18,456member
    LukeCage said:
    Oh look another one of these supply chain issue, every single year it seems like the same issues pop up. I think by now these should be seen as normal and regular for any company pumping out numbers like apple.
    If history is any judge, this is probably more to do with 'pumping' down AAPL than any true issue, this is Tim we are talking about after all. I suspect we will have an amazing Christmas period with Apple.  Just speaking for me, I've got a load of Apple stuff on my Santa list.
  • Reply 6 of 11
    Even at 20 million, that's like more Macs than were sold for almost the first 20 years...and they'll probably sell out in 20 minutes.

    The thing is, that many people accepting face-printing is going to really be a game changer. There is a lot of talk about how secure the face-prints are on the iPhone X, but if you look at the big picture, you can see a huge mass of people willing to accept being identified by a commercial entity based solely on their face. That's a game changer because facial identification does not require consent to perform when you don't own the sensors and are on someone else's property. We may finally see the personalized shopping and security displays like in "Minority Report." which attempt to coerce people using billboard displays into installing the location's BLE-enabled app to switch from a humiliating generic avatar to a personalized one, but either way they will be tracked using their face. Eventually the online communities will require face prints and it will be hard to gain employment, insurance or access to some countries without having certain face printing apps and an acceptable history of interactions with them. All because of this initial batch of 20 million iPhone Xen.


  • Reply 7 of 11
    mac voyermac voyer Posts: 1,283member
    For the extra iPhone that costs way too much and that nobody wants, we say, "only 20 million". I wonder how that number would play if we were taking about Essential phones, or Pixel 2 phones, or... You get the idea. I can't think of any other Phone where it would be dire news to only be able to manufacture 20 million for a two month period. The humanity.
  • Reply 8 of 11
    fastasleepfastasleep Posts: 3,297member
    mac voyer said:
    For the extra iPhone that costs way too much and that nobody wants, we say, "only 20 million". I wonder how that number would play if we were taking about Essential phones, or Pixel 2 phones, or... You get the idea. I can't think of any other Phone where it would be dire news to only be able to manufacture 20 million for a two month period. The humanity.
    “It’s a good problem to have.” — Tim Cook
  • Reply 9 of 11
    Every year it’s the same song, different verse... when will they ever learn: a short-term shortage, followed by all-the-product-the-market-can-handle...
  • Reply 10 of 11
    kevin keekevin kee Posts: 1,145member
    Still...


    0fc.jpg 23.5K
  • Reply 11 of 11
    charlitunacharlituna Posts: 7,215member
    LukeCage said:
    Oh look another one of these supply chain issue, every single year it seems like the same issues pop up. I think by now these should be seen as normal and regular for any company pumping out numbers like apple.
    yep. every year likely to cover up for analysts with no real clue over guessing how many units will be sold. and very year even when the supplies temporarily dry up, folks just wait for more
Sign In or Register to comment.