Foxconn Chairman Admits to 'Falling Short' of iPhone 5 Demand

[MacRumors]

Reuters reports that Foxconn chairman Terry Gou has acknowledged that his company is struggling to keep up with demand for the iPhone 5, echoing an earlier report addressing the difficulty of assembling the phone to meet strict quality control standards.

"It's not easy to make the iPhones. We are falling short of meeting the huge demand," Foxconn Chairman Terry Gou told reporters after a business forum.

However, he declined to comment on brokerage reports saying that the group's other unit, Foxconn International Holdings (FIH), had taken on some production.

The Wall Street Journal has another report on Gou's comments, quoting him as saying that Foxconn is shipping "far fewer" iPhones than Apple has requested.

"Market demand is very strong, but we just can't really fulfill Apple's requests," Taipei-based Hon Hai Precision Industry Co. Chairman Terry Gou told reporters on the sidelines of a local economic forum.

Mr. Gou declined to say which of the phone's design features has caused production issues and how long it will take for those issues to be solved.

Availability of the iPhone 5 remains tight some six weeks after the first round of launches, with Apple's online stores generally quoting 3-4 week shipping estimates and lines forming at some Apple retail stores on a daily basis as customers seek out available stock.

Article Link: Foxconn Chairman Admits to 'Falling Short' of iPhone 5 Demand

[saud0488]

I'm sure it wasn't a coincidence or anything that this happens with every iphone launch

[unlimitedx]

Selling like hotcakes

[gmanist1000]

Does the new facility in Brazil produce iPhones as well?

[ECUpirate44]

Hopefully they pan this out for the holiday buying season. I need 3 on 12/5

[jdegid]

How about the iMacs????? who's making those and when can I order??


Take my money now please

[JHankwitz]

Originally Posted by jdegid

How about the iMacs????? who's making those and when can I order??

Clearly stated in the Keynote: http://www.apple.com/apple-events/october-2012/

[Macman45]

Originally Posted by jdegid

How about the iMacs????? who's making those and when can I order??


Take my money now please

The two issues could be related to each other..It's possible that we are not seeing the iMacs ready for sale, the backlog of production on the lines has pushed back the release of the new imac...I'm in the same boat with now two buddies who want my help in ordering and speccing their new iMacs....I jsut hope this doesn't run out until the new year....From a very selfish perspective, I already have my IP5, one of the lucky ones who pre-ordered. I also have the Ipad4 ....But tell us Apple where are the iMacs?

[William Gates]

I walked into ATT Friday morning and bought a Black 64 GB no problem, except for all the problems the ATT sales staff caused me.

[Kissaragi]

Will this finally shut up the stupid conspiracy theorists that claim apple hold back supply deliberately?..... Probably not

*edit*... it didn't...

[FieldingMellish]

The way Jony Ives designs phones so thinner and lighter, Apple will soon have to offer a "build it yourself" option. You pay $80.00 less and receive a box of parts and a link to online instructions.

[Junkyman]

The entire situation is ridiculous. It's almost impossible to get an iPhone currently. And we are talking about 1,5 months after the launch.

[utwarreng]

Originally Posted by FieldingMellish

The way Jony Ives designs phones so thinner and lighter, Apple will soon have to offer a "build it yourself" option. You pay $80.00 less and receive a box of parts and a link to online instructions.

It'll be called the iKEAPhone.

[JayLenochiniMac]

It's the other way around. Apple is requesting "far more" iPhones that Foxconn is capable of shipping. This is why the factory workers and/or their supervisors allowed obviously damaged iPhones full of nicks and scuffs to slip past QC in order to meet the higher demand.

[mp0890]

Originally Posted by FieldingMellish

The way Jony Ives designs phones so thinner and lighter, Apple will soon have to offer a "build it yourself" option. You pay $80.00 less and receive a box of parts and a link to online instructions.

Joke or not, I don't think I would be against this.

[JAT]

Originally Posted by FieldingMellish

The way Jony Ives designs phones so thinner and lighter, Apple will soon have to offer a "build it yourself" option. You pay $80.00 less and receive a box of parts and a link to online instructions.

You know, the PC/Android users would love that!

----------

Originally Posted by saud0488

Why would it? It's not a conspiracy as much as a fact. Of course they hold back supply to create artificial demand. EVERY iPhone has had "supply issues," or so they call it. You'd think that if they really wanted to have enough, they'd make it so that there are enough made in advance.

Way to not be able to understand: economics, or even simple math.

[somethingelsefl]

Originally Posted by FieldingMellish

The way Jony Ives designs phones so thinner and lighter, Apple will soon have to offer a "build it yourself" option. You pay $80.00 less and receive a box of parts and a link to online instructions.

LOL. This is why MacRumors needs a "Comment of the Day" thread.

[divinox]

Originally Posted by FieldingMellish

The way Jony Ives designs phones so thinner and lighter, Apple will soon have to offer a "build it yourself" option. You pay $80.00 less and receive a box of parts and a link to online instructions.

80? More like 8.

----------

Originally Posted by haruhiko

I would say China is now even more capitalist than America.

You must have a funny definition of Capitalism.

[saud0488]

Originally Posted by Kissaragi

Will this finally shut up the stupid conspiracy theorists that claim apple hold back supply deliberately?..... Probably not

Why would it? It's not a conspiracy as much as a fact. Of course they hold back supply to create artificial demand. EVERY iPhone has had "supply issues," or so they call it. You'd think that if they really wanted to have enough, they'd make it so that there are enough made in advance.

[barkomatic]

Since they can't keep up with demand, maybe Apple/Foxconn should consider opening up additional factories -- in the U.S. A long shot I know.

[bbeagle]

Originally Posted by saud0488

Why would it? It's not a conspiracy as much as a fact. Of course they hold back supply to create artificial demand. EVERY iPhone has had "supply issues," or so they call it. You'd think that if they really wanted to have enough, they'd make it so that there are enough made in advance.

Every single Electric or Hybrid car ever produced by any company has had supply issues.

Is this a conspiracy too? Or is it true that both these cars and the iPhone are difficult to make and have high demand, thus creating the supply issues.

[MrDragon1]

I ordered a Verizon iPhone 5 black 16GB on Oct 23 and I just received a notice that it shipped today Nov 7. Just sharing my experience with it being just over 2 weeks for shipment. My original quoted ship date was Nov 16 so its actually shipped 9 days early

It also shipped Fedex 2 day for anyone wondering and should be delivered on Friday.

Edit: and I like to tinker on stuff so I would have taken them up on the save $80 to build it myself.. especially if it meant getting it right away

[Chrjy]

I'm still pretty surprised at how well the iPhone 5 is selling...it's a lovely phone and everything but it's not hugely different. I was expecting it to sell the same as the previous models...shows how much I know..

[rtdunham]

Originally Posted by saud0488

Why would it? It's not a conspiracy as much as a fact. Of course they hold back supply to create artificial demand. EVERY iPhone has had "supply issues," or so they call it. You'd think that if they really wanted to have enough, they'd make it so that there are enough made in advance.

No offense meant, but you'd be a lousy production manager. :-) You don't want to gear up to produce 5 million of something every two weeks if after two months demand is going to decline to 2 million every two weeks. There's a surge of orders at the beginning of the new product's run and production can't keep up with that because it would be unprofitable to build factories big enough to produce at that rapid rate but then run way below capacity the rest of the year. It's a juggling act. Few products can compare to that huge demand upon release, that's why we as consumers haven't had to think thru the causes and effects.

Btw I stood in line less than an hour to get my black 64GB Vz -- the day after the phone's premiere. Is it really harder to get one now than then?

[Heiki]

At this point, I really wonder when iPhone 5 is coming to my country.