Sidebar Sidebar
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

Apple Taking 'Cautious Approach' to iPhone Assembly This Year, Lowering Component Orders by 20%

MacRumors

MacRumors

macrumors bot
Original poster
Apr 12, 2001
63,547
30,863



Apple recently asked its iPhone suppliers to build "around 20 percent fewer" components for the line of iPhones debuting in the second half of 2018, according to four sources speaking to Nikkei. The move is Apple's attempt to take a "cautious approach" to iPhone shipments in 2018 compared to 2017 orders.

iphone-x-face-id.jpg

Specifically, last year Apple was said to have placed orders for the production of as many as 100 million iPhone 8, 8 Plus, and X units. That number is now down to 80 million in 2018, according to the sources. In the wake of Nikkei's report, Apple shares have fallen in premarket trading this morning.
"Apple is quite conservative in terms of placing new orders for upcoming iPhones this year," one of the four sources, who is in the supply chain, told the Nikkei Asian Review. "For the three new models specifically, the total planned capacity could be up to 20% fewer than last year's orders."
Click to expand...
Nikkei's report corroborates recent claims made by TF International Securities analyst Ming-Chi Kuo, stating that all three new iPhones will ship in September 2018 (two OLED models measuring in at 5.8 and 6.5 inches and a 6.1-inch lower-cost LCD model), despite some reports claiming that the LCD model could launch slightly later.
"The production yield for the LCD model's 'touch' function is not satisfactory at the moment, but it is improving," one of the supply sources said. "The cost-effective model is viewed as the tool for Apple to boost its total shipment volume this year, and all the suppliers are doing everything they can to make sure the LCD one hits the shelves as soon as possible."
Click to expand...
The sources said that Apple informed its supply chain to "prepare earlier" for this year's OLED models in a bid to ensure that the smartphones can launch in September, unlike the iPhone X's delay to November in 2017. Now, components for these smartphones will arrive at assemblers like Foxconn and Pegatron for final assembly in July, while the same will occur for the LCD model in August.

Apple is believed to launch three new iPhones in 2018: a 6.5-inch "iPhone X Plus", a second generation iPhone X, and a 6.1-inch LCD iPhone, all coming with a full-screen design and Face ID. According to Kuo, the price of the devices will start at $600-$700 for the LCD model, $800-$900 for the new iPhone X, and $900-$1,000 for the iPhone X Plus.

Article Link: Apple Taking 'Cautious Approach' to iPhone Assembly This Year, Lowering Component Orders by 20%
 
Article Link
https://www.macrumors.com/2018/06/08/apple-cautious-approach-assembly/
az431

az431

Suspended
Sep 13, 2008
2,131
6,122
Portland, OR
Here we go again with the absurd rumors that turn out to not be true most of the time.
[doublepost=1528461914][/doublepost]
Phogro said:
Wonder how apple will handle those on the Apple Upgrade Program who bought an iPhone X in November and wish to upgrade to an iPhone X Plus in September. Will they do an even swap or will they make you pay the remaining 2 payments?
Click to expand...

The upgrade program requires 12 payments before qualifying for an upgrade.
 
  • Like
Reactions: martyjmclean, deadoctopi, pianophile and 17 others
EdT

EdT

macrumors 68020
Mar 11, 2007
2,428
1,979
Omaha, NE
I believe that Apple is between a rock and a hard place regarding upcoming iPhone sales this fall, but it is a situation of their own making. For the last several years phones have had serious software and hardware issues but new features were what Apple decided to concentrate on and not fixing problems with current code or adequately testing what limitations new IOS’s had with 2-5 year old iPhones.

Because of very bad publicity they made a decision to concentrate on fixing problems and trying to produce a stable and reliable OS that works at least ok even on older phones.

But this means new features have to be delayed for this years models. Not that there won’t be ANY new features, there will, but features will probably be more evolutionary rather than revolutionary.

It was a conscious decision Apple made for the past few iPhones and IOS updates to highlight new features and just band-aid known problems, but at some point they were going to have to spend the time and resources to actually fix things. Evidently that time is this year. Hopefully. But it will negatively affect phone sales this fall.
 
  • Like
Reactions: martyjmclean, 0958400, jamesrick80 and 3 others
G

Gashole

macrumors member
Sep 9, 2014
37
142
I'm in no rush for a new iPhone. My 7 has been working perfectly well and I don't want a phone that's ALL glass. With the $29 battery replacement I expect my phone to keep working fine for another 2 years. After the 7, there hasn't been any new features that I "must have". I suspect we're nearing, or have already hit, smartphone peak.
 
  • Like
Reactions: MyMacintosh, Illumiiinati, NachoGrande and 28 others
Juicy Box

Juicy Box

macrumors 604
Sep 23, 2014
7,525
8,861
EdT said:
I believe that Apple is between a rock and a hard place regarding upcoming iPhone sales this fall, but it is a situation of their own making. For the last several years phones have had serious software and hardware issues but new features were what Apple decided to concentrate on and not fixing problems with current code or adequately testing what limitations new IOS’s had with 2-5 year old iPhones.

Because of very bad publicity they made a decision to concentrate on fixing problems and trying to produce a stable and reliable OS that works at least ok even on older phones.

But this means new features have to be delayed for this years models. Not that there won’t be ANY new features, there will, but features will probably be more evolutionary rather than revolutionary.

It was a conscious decision Apple made for the past few iPhones and IOS updates to highlight new features and just band-aid known problems, but at some point they were going to have to spend the time and resources to actually fix things. Evidently that time is this year. Hopefully. But it will negatively affect phone sales this fall.
Click to expand...


This reminds me of MacOS 10.5 Leopard.

Leopard was a very new feature heavy, but very unstable, RAM hungry, and had a huge footprint. Apple acknowledge the problems with Leopard, and concentrated on stability and user experience, rather than a bunch of new features for Snow Leopard.

I think it was a smart choice, as 10.6 is probably the most stable version of OSX.
 
  • Like
Reactions: jecowa, JohnnyCanadian, iShater and 2 others
A

alex00100

macrumors 6502
Mar 17, 2011
469
1,227
Moscow, Russia
Gashole said:
I'm in no rush for a new iPhone. My 7 has been working perfectly well and I don't want a phone that's ALL glass. With the $29 battery replacement I expect my phone to keep working fine for another 2 years. After the 7, there hasn't been any new features that I "must have". I suspect we're nearing, or have already hit, smartphone peak.
Click to expand...
You talking about removal of headphone jack?
 
Sir Ruben

Sir Ruben

macrumors 68000
Jul 3, 2010
1,885
1,200
UK
Yay the lack of availability hype begins again. Love this time of year :)

Apple hit the absolute limits of what they could charge for a phone with the X last year. The paid the price for that to some extent. They may also find that people who DID buy the X will be far less inclined to now upgrade every year. I used to but I can't justify that kind of price for something I don't need EVERY year.

The X should tide me over for a while despite the incoming incremental upgrades of marginally better camera features, faster Face ID, and pseudo 'upgrades' that amount to functionality they chose not to offer on older devices.
 
macduke

macduke

macrumors G5
Jun 27, 2007
13,142
19,681
I just hope that if they launch the new iPhone X in September that they allow iPhone Upgrade Program members to upgrade "early" without penalizing us because they were behind last year.
 
D

DotCom2

macrumors 603
Feb 22, 2009
6,166
5,435
cmaier said:
Every year the stock manipulators spread false rumors of production cuts and production difficulties. Every single year. And every year everyone falls for it.
Click to expand...
Then when/if it REALLY happens, no one is going to believe it.o_O
 
  • Like
Reactions: pianophile
Nanotyrns

Nanotyrns

macrumors 65816
Sep 16, 2012
1,441
1,477
Denver
NNooooooooooooo. Ugh, I was able to walk in on launch day and get a phone. That was awesome. For the love of the most holy beveled edge, wait until December to lower orders.
 
A

AJ5790

macrumors 6502
Jun 1, 2016
295
998
Phoenix
Obviously some publications learned nothing from the past 2 iPhone X quarters. Let me say it slowly. You. Can’t. Know. About. Sales. By. Looking. At. The. Supply. Chain. Yet, here we are again, dutifully reporting the “doom and gloom” from a company proven to be wrong about the iPhone X. At what point does the media become complicit by giving the fire oxygen? This has gotten so completely ridiculous.
 
  • Like
Reactions: StumpJumper, mech986, DCINKC and 5 others
nwcs

nwcs

macrumors 68030
Sep 21, 2009
2,722
5,262
Tennessee
I think this is a sign more of market saturation and maturity than anything else. The smartphone industry will soon be ripe for a disruption at some point that changes things. I doubt it will be AR but I have no idea what it will be. It’s just incremental changes from here on out. In fact, my next iPhone might be my last phone for several years.
 
  • Like
Reactions: MKevin3
R

recoil80

macrumors 68040
Jul 16, 2014
3,117
2,755
macduke said:
I just hope that if they launch the new iPhone X in September that they allow iPhone Upgrade Program members to upgrade "early" without penalizing us because they were behind last year.
Click to expand...

I don't think you'll be penalised but as far as I know you have to make 12 payments so if you want to have the new iPhone in September you may need to pay the equivalent of 2 months to reach the 12th payment and be eligible for an upgrade.

I bough my 8+ on October so I'll be able to switch to the new iPhone at the beginning of the month, just a couple of weeks after the initial launch.
Not sure I'll go for a plus model this time, the 6.1 sounds promising and although I'm not fond of X's aspect ratio I may chose that model to save money and have a more compact phone.
 
You must log in or register to reply here.
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.
Top Bottom