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Foxconn Facing Display Shortages as it Struggles to Meet iPhone 6 and 6 Plus Demand

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Apr 12, 2001
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Apple's iPhone 6 and 6 Plus supplies may continue to be constrained as Foxconn reportedly is struggling to keep up with demand for the handsets, reports the Wall Street Journal. Unlike previous years that saw Foxconn handling the launch of one flagship handset, the manufacturer is now tasked with producing two iPhone models that are in high demand.
The Taiwan-based manufacturer, which has more than one million workers in China, is operating about 100 production lines around the clock in Zhengzhou. The challenge is to manufacture two complicated new iPhones on a large scale at the same time because Foxconn is the sole assembler of the 5.5-inch iPhone 6 Plus. It also makes the majority of the iPhone 6 that comes with a 4.7-inch display, the people said.
Foxconn reportedly has hired more than 200,000 workers at its Zhengzhou site to work on Apple's new iPhone. Even with this large labor force and daily output volumes of 140,000 iPhone 6 Plus units and 400,000 iPhone 6 units, the company is still not able to meet pre-order demand.

One issue reportedly facing the manufacturer is a shortage of 5.5-inch displays, which are still only at being produced at a 50-60 percent output rate, leading suppliers to reject almost half of the display units that come off the production line.

Apple has faced similar shortages with previous iPhone models and has been able to gradually ramp up supply to meet demand. Apple will begin selling its new iPhone 6 and iPhone 6 Plus starting Friday, September 19th in a handful of launch countries. A larger global rollout is planned the following week with sales beginning on September 26th.

Article Link: Foxconn Facing Display Shortages as it Struggles to Meet iPhone 6 and 6 Plus Demand
 

MH01

Suspended
Feb 11, 2008
12,107
9,298
Sounds like a routine apple launch. Demands just gets bigger.

Shocking news would be, "Apple fulfils demand for new iphone at launch"
 
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Vanilla Face

macrumors 6502
Aug 11, 2013
470
150
And in a few years Apple will bring production of the iPhones to the US because automation will make it cheaper to assemble here than to assemble in China and ship them.
 
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rdy0329

macrumors 6502a
Mar 20, 2012
559
225
Lets do some math:

140k iPhone 6+ per day
400k iPhone 6 per day.

Reports of July ramp up, lets put 6 working days in there:

140*26 = 3.64M units before launch
400*26 = 10.4M units before launch

And its still NOT ENOUGH?! Dang it Apple, get your act together!
 
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bushido

Suspended
Mar 26, 2008
8,070
2,754
Germany
lets just hope they dont rush these things out and we are all left with the first few charges of display issues and bleeding
 
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keys

macrumors member
Apr 9, 2007
36
38
Always great to end your source quotes with ..the people said.
 
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haruhiko

macrumors 603
Sep 29, 2009
5,208
3,162
My launch day 128GB iPhone 6 plus is quoted to worth a double of the retail price (USD2,064) in the secondary market. It is so hard for me to keep it. I guess I will sell it.
 
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kappaknight

macrumors 68000
Mar 5, 2009
1,583
82
Atlanta, GA
And in a few years Apple will bring production of the iPhones to the US because automation will make it cheaper to assemble here than to assemble in China and ship them.

Doubtful... at least not for a long, long time. Ore mines are found in the east, and most of the various components that make up the phones are also made there. It'd still be easier and cheaper to build an automation center over there than here.

Lets do some math:

160k iPhone 6+ per day
400k iPhone 6 per day.

Reports of July ramp up, lets put 6 working days in there:

160*26 = 4.1M units before launch
400*26 = 10.4M units before launch

And its still NOT ENOUGH?!

Is the 4M units just Apple sales, or all the sales combined? I seemed to remember the 2M number from last year was just sales through the Apple Store. At&t, and other carriers released their own sales number separately from the Apple Store IIRC.
 
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Kevsta26

macrumors 6502a
Apr 2, 2011
677
295
USA
Lets do some math:

160k iPhone 6+ per day
400k iPhone 6 per day.

Reports of July ramp up, lets put 6 working days in there:

160*26 = 4.1M units before launch
400*26 = 10.4M units before launch

And its still NOT ENOUGH?!

You also have to think about all the phones they're producing for the later launches in more countries.
 
Comment

myestro1111

macrumors newbie
Aug 26, 2014
17
1
What am I missing here

540,000 units a day. 200,000 workers.
That's 2.7 iPhones a day quota per person.
Doesn't sound like a very efficient assembly line to me.
 
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rdy0329

macrumors 6502a
Mar 20, 2012
559
225
Is the 4M units just Apple sales, or all the sales combined? I seemed to remember the 2M number from last year was just sales through the Apple Store. At&t, and other carriers released their own sales number separately from the Apple Store IIRC.

At the very least its orders from Apple.com (including carriers) in launch countries. Still, I can't imagine Apple will ever satisfy launch week demands anytime soon.
 
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Ludatyk

macrumors 68020
May 27, 2012
2,271
1,204
Texas
Well, with shortage of the 6+ at preorder.. Within this week... I just hope they adapt to the shortage on launch day...
 
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rdy0329

macrumors 6502a
Mar 20, 2012
559
225
You also have to think about all the phones they're producing for the later launches in more countries.

I'm just playing around. I know they still struggle with allocations and such. Good thing China launch is out of the picture (for now).
 
Comment

OatmealRocks

macrumors 6502a
Jul 30, 2009
626
3
And in a few years Apple will bring production of the iPhones to the US because automation will make it cheaper to assemble here than to assemble in China and ship them.

HHahaha right.

----------

540,000 units a day. 200,000 workers.
That's 2.7 iPhones a day quota per person.
Doesn't sound like a very efficient assembly line to me.

You are such the expert. Please tell us more areas of improvement for Apple.
 
Comment

Coreless apples

macrumors member
Sep 11, 2014
71
15
Long Island
I remember when I received my black iphone 5 at launch and all I remember noticing is all the blemishes and scuffs I had on my phone upon unboxing. I'd rather them take their time and not overwhelm the people who are behind building these beautiful devices.
 
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