Apple Expected to Stockpile 5G iPhones in Advance Due to Concerns Over Possible Component Shortages

[MacRumors]

Apple is expected to build up inventories of its upcoming 5G iPhones in advance due to concerns over possible component shortages amid the global health crisis, according to sources cited by the Nikkei Asian Review.

An excerpt from the report:

Apple has notified several of its suppliers that it plans to make about 213 million iPhones in the 12 months through March 2021, up 4% from the same period a year ago, despite some suppliers' belief that orders could end up being significantly lower, Nikkei has learned.

The report claims that production of current models like the new iPhone SE and the upcoming 5G models will be split nearly 50-50.

Apple plans to release four 5G-enabled iPhones later this year, including one 5.4-inch model, two 6.1-inch models, and one 6.7-inch model, according to analyst Ming-Chi Kuo and other sources. All four models are expected to feature OLED displays, flatter edges like the iPhone 5 or the 2018 and later iPad Pro, and a smaller notch.


Article Link: Apple Expected to Stockpile 5G iPhones in Advance Due to Concerns Over Possible Component Shortages

 

[julesme]

Not a bad strategy, but hopefully doesn't indicate a major launch delay (otherwise how would there be time to stockpile?)

 

[AngerDanger]

If they're having trouble storing any overflow, I'd be more than happy to hold on to a few.

 

[ksec]

Just a reminder Nikkei Asian Review has very little / poor track record of anything Apple.

They are much more likely to stockpile *component* rather then the assembled iPhone

 

[ArtOfWarfare]

Just a reminder Nikkei Asian Review has very little / poor track record of anything Apple.

They are much more likely to stockpile *component* rather then the assembled iPhone

Right - stockpiling components makes a lot more sense to me. The phones will just lose 1% of their value each month sitting in storage... components should be much more useful, in that they can prevent production shutdown later if issues crop up in the supply chain.

 

[Yr Blues]

Because of health and privacy concerns, I'm not going to support 5G.

 

[clayj]

Let me know when Apple moves its iPhone manufacturing out of China -- preferably to the US, but really any other country will do.

 

[Romeo_Nightfall]

Makes no sense, why stockpile when economic situation gets better later.
This is ridiculous

 

[Kabeyun]

Makes no sense, why stockpile when economic situation gets better later.
This is ridiculous

Tim Cook is the Sage of Supply Chain. I’m going with his judgment.

 

[Textime]

Let me know when Apple moves its iPhone manufacturing out of China -- preferably to the US, but really any other country will do.

We must become independent from China - Europe included, especially Germany

 

[69Mustang]

You're both right imo.

Makes no sense, why stockpile when economic situation gets better later.
This is ridiculous

It doesn't make sense to stockpile phones. That is ridiculous. Thing is, I doubt they're stockpiling phones.

Tim Cook is the Sage of Supply Chain. I’m going with his judgment.

Going with Tim's judgment is a safe bet. Thinking that judgment includes stockpiling phones... not so much.
This report only makes any sense if Apple is stockpiling components, not phones. I'd bet something has been lost in translation.

 

[LeadingHeat]

4% to me doesn’t sound like “stockpiling”. Seems a bit dramatic. If anything they’re keeping a little more components around than usual to soften the blow if coronavirus 2021 hits next year.

 

[JohnApples]

Name a year when “component shortages” or “supply constraints” weren’t rumored.

 

[now i see it]

only reason to "hoard" parts now is because they think the CoV crisis is only going to get worse and factories in the future will need to shut down

 

[Kabeyun]

You're both right imo.

It doesn't make sense to stockpile phones. That is ridiculous. Thing is, I doubt they're stockpiling phones.

Going with Tim's judgment is a safe bet. Thinking that judgment includes stockpiling phones... not so much.
This report only makes any sense if Apple is stockpiling components, not phones. I'd bet something has been lost in translation.

Agree with this and similar comments. I simply meant that whatever the reality that triggered this rumor, Tim’s call is more likely the correct one as opposed to some random MR member.

 

[m0sher]

Because of health and privacy concerns, I'm not going to support 5G.

That’s false info. Don’t believe that conspiracy stuff.

 

[StarShot]

Makes no sense, why stockpile when economic situation gets better later.
This is ridiculous

I'm with you UNLESS corona goes away soon. A sizable part of the population out of work and a lot more holding on with their fingernails. Under these conditions, blowing $1000+ on a new 5G phone would be STUPID.

 

[IIGS User]

That’s false info. Don’t believe that conspiracy stuff.

Haven't you heard about this electricity thing? I hear Alternating Current can kill an Elephant.

The health and safety of your children are at risk. For God's sake, man!

 

[PickUrPoison]

I'm with you UNLESS corona goes away soon. A sizable part of the population out of work and a lot more holding on with their fingernails. Under these conditions, blowing $1000+ on a new 5G phone would be STUPID.

There’s no indication this coronavirus is going away soon.

 

[DelayedGratificationGene]

Because of health and privacy concerns, I'm not going to support 5G.

boy I’ve heard that one before. So many times lol

 

[jbachandouris]

I'm with you UNLESS corona goes away soon. A sizable part of the population out of work and a lot more holding on with their fingernails. Under these conditions, blowing $1000+ on a new 5G phone would be STUPID.

That's just it, very few outright 'buy' their $1000 phones. They use IUP, Next or some other upgrade plan. I pay about $60/month for my present phone. If the payment is the exact same, I will upgrade as I'm sure many others will.

Fortunately, I am still employed while others are not. Usually it's the other way around. Always seem to find a way to pay my cell phone bill.

 

[5105973]

Because of health and privacy concerns, I'm not going to support 5G.

Because AT&T is ponderous and doesn't give a crap about my region and will overprice new plans anyway, 5G won't be supported on my already 5G-capable Samsung for the foreseeable future. I barely get 4G when I go for a walk in my neighborhood. I don't live in some remote bunker, but we have some cows a ways down the road and I think they scare cellular providers from putting up a decent tower.

Actually, I think as far as your health is concerned, the 5G death beams will be shooting at you from any nearby towers regardless of whether or not your phone is capable of receiving them.

 

[CarlJ]

Tim Cook is the Sage of Supply Chain. I’m going with his judgment.

Yeah, it's amusing watching armchair CEO's whose experience is, "I've read dozens of articles," go up against Tim Cook, whose experience is, "I've very successfully run the supply chain for a trillion dollar company for many years". I know who I'd bet on.
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If they're having trouble storing any overflow, I'd be more than happy to hold on to a few.

Cool, they're looking for storage spots. The minimum quantity is 50,000 units. You can handle that, right?

 

[CarpalMac]

Tim Cook is the Sage of Supply Chain. I’m going with his judgment.

People can be critical of TC for many reasons if they wish, this one however is firmly within his core field of expertise.

 

[CarlJ]

Because of health and privacy concerns, I'm not going to support 5G.

Don't worry, they've found a way to protect you against 5G. It involves bloodletting with leeches.