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

[jayducharme]

Originally Posted by neonmd

I have managed to get 2 already.
Go online after 10 pm.
Order
Select in store pick up

That's what I did and after a week of trying scored mine today. One of the Apple employees told me to select the iPhone model and the store just before 10 pm and then keep refreshing it (sort of like eBay bidding).

Of course, this strategy only pays off if there's an Apple store near you. But it worked for me (finally).

[Thunderhawks]

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.

Thank you for proving with your comment that you know absolutely nothing about production, sales , forecasting, supply chains etc.!

Take a business class and post again after that please.

[iChrist]

Originally Posted by TrentS

Foxconn Just needs to purchase one thing: The Easy Button.

"That was easy!"

What is that?

[akm3]

Originally Posted by haruhiko

And yet you can always walk in and buy Samsung's any flagship phones... Actually the salespeople really want you to get one! Either Samsung has some crazy super factory or their products are selling much slower.

Or they are much easier to build.

[MrDragon1]

Originally Posted by iChrist

What is that?

Staples Easy Button...
http://www.staples.com/Staples-Easy-...product_606396

[padrino121]

Originally Posted by haruhiko

And yet you can always walk in and buy Samsung's any flagship phones... Actually the salespeople really want you to get one! Either Samsung has some crazy super factory or their products are selling much slower.

Who makes the most phones in the world? Samsung... With that said the S3 is on track for 30 million units since launch, that being one of the harder phones to build for Samsung..

[wigby]

yet another argument for bring some of apple's manufacturing back here in the u.s.

yes the wages are higher here
yes the government regulations are too strict here
yes the taxes, environmental watchdogs & machining aren't up to snuff here

but

if apple wants to truly vertically dominate with future mobile devices, they will run several manufacturing plants around the world to offset problems in one centralized plant. they already have brazil and china. add one in north america and they will be able to say "made in the usa" to lead the way.

[CraigJ]

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.

I recommend a basic economics class for you. There are zero facts to support your hypothesis.

[BRLawyer]

1 - I got mine from the Swiss Online Store EXACTLY one month after having ordered...well, I actually haven't yet opened the box as I am in Belgium right now... But this means that at least the shipping estimates are accurate.

2 - As far as I know, the Foxconn factories in my home country (Brazil) are not producing iPhone 5s - right now they are for iPads and perhaps older iPhone models...in fact, the iPhone 5 is yet to be launched in BR.

3 - Apple had better watch out, otherwise it will get burned just like it did with the PowerBook 500 series in the 90s...a classic case of over-demand and under-supply. The company cannot afford to drop the ball this time, ESPECIALLY since strong competing products can easily fill that void with impatient customers.

[canucksfan88]

Originally Posted by 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.

i walked into a futureshop yesterday and they had a whole shelf full...

[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/

[xofruitcake]

Originally Posted by ALMF

Apple can not meet demand for iPhones and Minis. Surely someone out there wanted a phone or tablet and bought the competitor's product because there was no ridicuous wait for it. one here one there add up to loss of sales.

I think the problem is that Apple tries to meet timelines while at the same time as trying to keep things secret. secrecy causes production to start much closer to the timeline due date to reduce leaks. that plus possible production issues cause massive product delays.

Apple normally start production about 2 1/2 months or so ahead of launch IPad 3 started production on 1/1 for early March launch early this year. But Iphone5 was gated by the in cell touch screen and Foxconn added a new facility, Foxconn TaiYuan. Both slow down the per-launch build up. and then they hit the scuff gate. I would imagine the number of reworked iphone5 is going into million range. All these add to the delay. The fact that costumer hung in there waiting is amazing.

[curbyi]

I am absolutely mortified people are unable to get their hands on mobile phones.
I stupidly thought that the headline related to the treatment of the staff at foxconn rather than iPhone 5 demand.
Its beyond belief that that's all we I'm talking about when it comes to Foxconn rather than the conditions that its employees work under .
Nets catch jumpers for Christ's sake, I hope the chairman does not take a few employees outside and shoot them to try and concentrate the minds of the other employees to stop them falling short of demand.

[JHankwitz]

Originally Posted by 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.

Cute... U.S. workers aren't willing to put up with the stress and schedules they do in Asia. How many union workers do you think would show up to work weekends and Thanksgiving upon request?

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Originally Posted by ALMF

the comments about do this after 10PM and pick up Apple store are irrelevant as most people who buy the products are not within a reasonable distance to Apple stores.

So, you're saying that Apple is locating their stores where "most people who buy the products" are not located? I think not! I believe the average Apple store currently has about 17,000 visitors a week. The stores must be reasonably close to them.

[JediZenMaster]

It's not too hard to find one but for some reason people are obssessed with getting their phone directly from apple.

I noticed this on launch day I went to my carrier and there were only 6 people in line as opposed to the apple store where there were a lot more.

People can be stupid for lack of a better term.

Maybe if people went directly to sprint or Verizon or AT&T they would fare better

[damitssam]

Stock price down 20% now.... since the iphone 5 launch. Think abut it.

[frayne182]

Originally Posted by JediZenMaster

It's not too hard to find one but for some reason people are obssessed with getting their phone directly from apple.

I noticed this on launch day I went to my carrier and there were only 6 people in line as opposed to the apple store where there were a lot more.

People can be stupid for lack of a better term.

Maybe if people went directly to sprint or Verizon or AT&T they would fare better

Obviously they only want to get iPhones from Geniuses

[Gemütlichkeit]

Send me the parts, I'll put it together myself

When will Apple start offering unlocked phones

[ALMF]

Originally Posted by JHankwitz

So, you're saying that Apple is locating their stores where "most people who buy the products" are not located? I think not! I believe the average Apple store currently has about 17,000 visitors a week. The stores must be reasonably close to them.

Yes

Just because apple stores are high traffic locations does not mean that their global customers or even U.S. customers are mostly located near an apple store. Apple stores are few and mainly located in large cities with big population or tourism traffic.

It is unrealistic to believe that the average custumer will drive and hour or more to buy a phone. I live in FL and the nearest location in any direction or state is over 4 hours away. and BTW, we have 2 Targets, 5 Walmarts, Best Buy.... so dont start to think that i live in the woods or at a farm in the middle of nowhere.

I know this location map is old but it shows what I mean and it has not changed much anyways.

[ALMF]

Originally Posted by curbyi

I am absolutely mortified people are unable to get their hands on mobile phones.
I stupidly thought that the headline related to the treatment of the staff at foxconn rather than iPhone 5 demand.
Its beyond belief that that's all we I'm talking about when it comes to Foxconn rather than the conditions that its employees work under .
Nets catch jumpers for Christ's sake, I hope the chairman does not take a few employees outside and shoot them to try and concentrate the minds of the other employees to stop them falling short of demand.

article piece has nothing to do with employee treatment so why would you be "beyond belief" that this thread does not discuss it.

[Tech198]

Stay tuned for the next part: when Foxconn gets worse.

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Originally Posted by JediZenMaster

It's not too hard to find one but for some reason people are obssessed with getting their phone directly from apple.

I noticed this on launch day I went to my carrier and there were only 6 people in line as opposed to the apple store where there were a lot more.

People can be stupid for lack of a better term.

Maybe if people went directly to sprint or Verizon or AT&T they would fare better

True, but your missing something.......international carriers lock their phones, and you must be in contact, otherwise you will be paying outright anyway.

No thanks. I don't mind paying $800 for a phone, on condition i can do what i want without needing to pay mobile carriers an unlock fee, for something i already own.

Yes, its much better getting it for next to nothing, but paying $1100 over a two year contract. :P

More profit for them..... No way...

[SAD*FACED*CLOWN]

Originally Posted by rtdunham

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?

of course it's harder to get one now than on the launch weekend...did you read that question before you typed it? or maybe that was rhetorical

[aliensporebomb]

It took my friend about three and a half weeks to get his iPhone5 after I got mine but part of the reason for this wait was the fact that he was aiming for a 16 gig version (I needed 64 but settled for 32). I'm pretty pleased with mine and my friend seems to have thought the wait was worth it (he upgraded from a 3gs).

[KikoPT]

Originally Posted by Patriks7

This. In most European countries I checked, there's a waiting time of 4-6 weeks. This long after launch! I remember this long after the 4 launch, you could easily walk into a store and chose the size and color and walk away with it.

I completely agree ...

Just to reinforce the ridiculous of the situation:
- I was working in Dubai during October and although the iPhone 5 isn't yet released there you can easily find boxes and boxes of them in the electronics shops of the malls (grey market in action)
- I didn't bought one (looking for 64gb) because you still pay a bit more overhead to get one (around 1050 euros for the 64 gb)
- I came back to Portugal and was expecting to be able to buy one. There is ZERO stock in the stores and the 3-4 weeks availability in the online store.
- someone told me that Portugal received just 400 units country wide since launch (completely ridiculous even for a small country like Portugal)

C'mon Apple, even my car with custom options didn't take 3 weeks to be delivered to me.

[tdiaz]

Ya know.. When your company name contains two terms you don't want to hear in a typical business dealing ..

.. Fox and conn.. ;-)