Apple Increases iPhone 7 Component Orders for Q4 2016

Discussion in 'iOS Blog Discussion' started by MacRumors, Sep 28, 2016.

  1. MacRumors macrumors bot

    MacRumors

    Joined:
    Apr 12, 2001
    #1
    [​IMG]


    [​IMG]
    Apple has increased its part and component orders for the iPhone 7 series this year, with orders for the fourth quarter said to be between 20 and 30 percent higher than expected (via DigiTimes).

    According to sources from Taiwan-based touch panel makers General Interface Solution (GIS), which is a subsidiary of Foxconn, increased touch panel orders from Apple mean the supplier will see revenues grow significantly in Q4 2016.

    Initial demand for Apple's iPhone 7 series has been high, with excitement for the company's jet black color option and its larger dual lens camera-equipped handset leading to long wait times as regions struggle to re-stock following the first wave of orders.

    Some analysts believe the timing of Samsung's exploding battery problem is leading a number of consumers returning defective Note 7 devices to choose an iPhone 7 over a like-for-like replacement. According to one online poll conducted by SurveyMonkey, 26 percent of Note 7 owners plan to use their refunds to switch to Apple's flagship phone, while 35 percent said they would keep the refund, without specifying what phones they would use in the future.

    Those numbers compare to 21 percent who said they would swap for a different Samsung model, while only 18 percent said they planned to get a rectified Note 7, which remain in short supply.

    Samsung claims its own data shows a much higher retention rate, and says about 90 percent of Note 7 owners had chosen to get a direct replacement, after the corrected devices became "widely available". So far, more than 60 percent of defective devices in the U.S. have been exchanged, the company said in a statement.

    Shipments of iPhone 7 units are expected to reach 80 to 84 million units in the second half of this year, compared to 85 to 90 million iPhone 6s devices shipped in the latter half of 2015, according to original design manufacture sources.

    Article Link: Apple Increases iPhone 7 Component Orders for Q4 2016
     
  2. Relentless Power macrumors Penryn

    Relentless Power

    Joined:
    Jul 12, 2016
    #2
    With the Note 7 being limited due to the recall, the iPhone 7 will be in demand for quite some time.
     
  3. djcerla, Sep 28, 2016
    Last edited: Sep 28, 2016

    djcerla macrumors 68000

    djcerla

    Joined:
    Apr 23, 2015
    Location:
    Italy
    #3
    "Samsung claims its own data shows a much higher retention rate and says about 90 percent of Note 7 owners had chosen to get a direct replacement"

    Not only that! They also bought a spare one, just in case!
     
  4. kissmo macrumors 6502a

    Joined:
    Jun 29, 2011
    Location:
    Budapest, Hungary
    #4
    Darn Android users....delaying my order.... :))
     
  5. alexgowers macrumors 65816

    Joined:
    Jun 3, 2012
    #5
    So apple screwing over suppliers trying to reduce their orders for parts earlier on has come back to bite them? I hope so they deal with suppliers so badly. I love the products but apple is a stinky company right now.
     
  6. spiderman0616 macrumors 68040

    spiderman0616

    Joined:
    Aug 1, 2010
    #6
    And those customers are going to be pleased. If you ignore all the usual Apple bashing that happens after an iPhone launch (especially from users on this site for some reason) the iPhone 7 is a fantastic upgrade. My only disappointment so far has been that I still can't pick up a pair of AirPods yet.
    --- Post Merged, Sep 28, 2016 ---
    This comment doesn't even make sense.
     
  7. djcerla macrumors 68000

    djcerla

    Joined:
    Apr 23, 2015
    Location:
    Italy
    #7
    Or, Apple honestly underestimated the iPhone 7 demand.

    A supplier makes higher prices for lower quantities, not the opposite as you're trying to suggest.
     
  8. apolloa, Sep 28, 2016
    Last edited: Sep 28, 2016

    apolloa macrumors G4

    Joined:
    Oct 21, 2008
    Location:
    Time, because it rules EVERYTHING!
    #8
    This is possibly just damage control, several outlets and reports are already repeatedly claiming the iPhone 7 sales are down 20% or more on the iPhone 5 sales, so I've read. Will be an interesting results call, even more so if they refuse to disclose iPhone 7 sales numbers...

    The Note 7 story has from what I've seen only been hyperbole generated by MacRumors. I mean how many customers actually took that survey monkey survey?
     
  9. TrueBlou macrumors 68040

    TrueBlou

    Joined:
    Sep 16, 2014
    Location:
    Scotland
    #9
    .... While many others claim demand to be higher than for the iPhone 6s and some suggesting even greater demand than for the iPhone 6. That's the trouble with these reports, none of them actually have any actual idea of the reality.

    Though so far every report I've seen of weak demand has been based on a certain KGI analysts comments. Need I say more :D

    Oh, and the Note 7 hyperbole isn't just SurveyMonkey, Branding Brand among others have also said they've found support for Samsung wavering since the battery incident.
     
  10. 69Mustang macrumors 604

    69Mustang

    Joined:
    Jan 7, 2014
    Location:
    In between a rock and a hard place
    #10
    That is typical in most cases. However, earlier rumors had Apple asking for up to 20% price cuts on order volumes that were supposedly 30% lower.
     
  11. TrueBlou macrumors 68040

    TrueBlou

    Joined:
    Sep 16, 2014
    Location:
    Scotland
    #11

    We also don't know how true the rumours were, or how successful Apple were if they were true. That doesn't change that fact that increasing orders tends to get you better volume discounts regardless of who you are.

    Not that I'm suggesting Apple chancing their arm and trying to force their costs down is anything new.
     
  12. apolloa macrumors G4

    Joined:
    Oct 21, 2008
    Location:
    Time, because it rules EVERYTHING!
    #12
    Yeap, will need to read between the lines of Apples report. But KGI is usually accurate.
     
  13. Nozuka macrumors 68020

    Joined:
    Jul 3, 2012
    #13
    every company tries to get lower prices. doesn't mean they will actually get it though.
     
  14. spiderman0616 macrumors 68040

    spiderman0616

    Joined:
    Aug 1, 2010
    #14
    KGI is usually accurate on products, but their accuracy on sales is spotty at best.
    --- Post Merged, Sep 28, 2016 ---
    The Note 7 story is far from hyperbole limited to MacRumors. That's a ridiculous claim. The exploding battery story is everywhere all the time right now.

    And Apple does not just order parts to calm the rumor mill down. They are supply chain masters and only order parts when they need to order parts.
     
  15. kas23 macrumors 603

    kas23

    Joined:
    Oct 28, 2007
    #15
    Remember folks, from the horse's mouth of Tim Cook, it's inaccurate to read into supply order rumors. It's a two-way street here.
     
  16. RedOrchestra Suspended

    Joined:
    Aug 13, 2012
    #16

    My father never used to put a whole lot of significance in percentages, after all, 10% of nothing is still nothing.
     
  17. 69Mustang macrumors 604

    69Mustang

    Joined:
    Jan 7, 2014
    Location:
    In between a rock and a hard place
    #17
    As it relates to my quote, whether it's true or not is immaterial. I was only countering the blanket statement.
     
  18. TrueBlou macrumors 68040

    TrueBlou

    Joined:
    Sep 16, 2014
    Location:
    Scotland
    #18

    KGI are, well, they do have a better than average track record when it comes to some of the hardware side, particularly when it's the blindingly obvious that probably anyone on here could tell you. When many of your predictions fall into, new iPad will be released in the fall, iPhone 4/5/6/7 to have upgraded processor and improved camera, next iPhone to be thinner and lighter, next iPad to be thinner and lighter, new MacBooks to feature faster processors and better screens, do we see a pattern here?

    Outside of that they clearly have their sources, no-one can deny that, they pick up on things others don't sometimes. But their track record with Apples finances is a lot less accurate than that of Apples hardware. Probably because they don't have a source inside Apple to leak them information like they do with the supply chain, so then their less than stellar guessing abilities come into play.

    I'm not saying they don't have form, but I certainly wouldn't say usually accurate, not at all. Still, at this point anything anyone says is a guess, until the quarterly results come out we won't know.

    I do expect Apple to release sales numbers then, there's no reason for them not to. I get why they don't think it's worthwhile doing the first day/weekend/week/weeks numbers, because they are dead right, look around, iPhones are like hens teeth just now just as they always are at launch so they're selling out no matter what. Demand isn't the issue at this point in time, supply is, better to hold off and give more meaningful numbers.
    --- Post Merged, Sep 28, 2016 ---
    I was more pointing towards the rumours side of things, being rumours, well need we say more. The rest, well what can I say, 60 hours without sleep and a bucketload of medication tends to make you waffle on :D
     
  19. GrumpyMom macrumors 604

    GrumpyMom

    Joined:
    Sep 11, 2014
    #19
    Interesting that someone who had bought a Note 7 would want an IPhone 7 or 7 Plus as a replacement over another Android phone. They're so very different. I bought a Note 7 and insisted on waiting for a replacement because I specifically wanted Note 7 features---well, the non-incendiary ones, ;). I'm not saying people did not make this choice, because I know people who did, both on this forum and in my life. But it's just interesting.

    Anyway, that's good news about Apple increasing their component orders. Anything to ease supply constraints for the consumer is always a good thing. And I hope that means once they get them cranking out at a steady pace they can do a better job weeding out defects, such as the ones that have troubled members of this forum.
     
  20. BlueMoon63 macrumors 68020

    Joined:
    Mar 30, 2015
    #20
    You said the key word... "rumors". Several "expert" analysts said apple sales were higher than last year and several said it was fictional that apple sales were higher because of the delays for the 7 Plus in Jet Black. They said it was only because of run-rate and things like that...

    Rumors seem to get responses that are reactive as true facts while never coming form the source. This comes from the source, so it is less of a rumor.
     
  21. 1041958 Suspended

    1041958

    Joined:
    Aug 28, 2016
    #21
    Note 7 will have nothing to do with iPhone 7 sales. It sells a fraction of what the iPhone does, so even if every single returned Note 7 buyer got an iPhone 7 instead it would still only be an extra 1.4 million sales. The Note Series and Galaxy S Series combined are not even close to the iPhone.

    Besides, the people who bought the Note 7 would be the hardcore fans who wanted it right away. They aren't going to switch for anything. They'll be happy to keep their inferior device that can't even keep up with a year old iPhone.
     
  22. Jax44 macrumors 6502a

    Jax44

    Joined:
    Jul 24, 2010
    Location:
    Carmel, California
    #22
    Not on sales numbers.
     
  23. TrueBlou macrumors 68040

    TrueBlou

    Joined:
    Sep 16, 2014
    Location:
    Scotland
    #23
    When you say, this is less of a rumour, do you mean this specific article we are commenting on? I don't think anyone suggested this article was a rumour.
    --- Post Merged, Sep 28, 2016 ---

    I'd hardly call it inferior, it's actually a decent device (battery issue aside,) but I'm all for those people keeping with Samsung less people to contend with for getting my iPhone :D
     
  24. FFR macrumors 68040

    FFR

    Joined:
    Nov 4, 2007
    Location:
    London
    #24
    Damage control please. This is the second report since the launch of the iPhone 7 that apple has increased component orders.

    Looks like the iPhone 7 is a hit. I mean you even bought one.
     
  25. FFR macrumors 68040

    FFR

    Joined:
    Nov 4, 2007
    Location:
    London
    #25
    Exactly if every note 7 owner switched to the iPhone 7 that would be pittance.

    Remember the 2.5 million was sell in not sell through.
     

Share This Page

39 September 28, 2016