Because operators like to you get tied in with long contracts and Apple likes the rent model. They just extract more money from people who want to upgrade every year and especially those who cannot afford to buy unlocked (and probably shouldn't buy at all...).
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iPhone X Production Supposedly Going Much Slower Than Apple Originally Planned
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White iPhone 4 was not available at launch, despite heavy demand. Not that you could pre-order it, but a lot anticipated being able to pick one up in store on launch day.
Apple has instructed some of its suppliers to slow down delivery of iPhone X components, according to Taiwanese website DigiTimes.
The report, citing unnamed sources from within Apple's supply chain, claims the suppliers are now shipping only about 40 percent of the components originally planned for the initial production of the iPhone X.
Apple is allegedly waiting to see how many iPhone X pre-orders it receives, and monitoring how well the already-released iPhone 8 and iPhone 8 Plus sell, before fully ramping up production overseas.
However, the report mentions some suppliers still need to step up production to meet the 40 percent requirement due to low yield rates at their production lines, which is the more likely reason for the slowdown.
Essentially, since some suppliers are manufacturing iPhone X parts more slowly than others, Apple could be capping shipments from all suppliers so it has an equal number of all components when the device launches in just under six weeks.
Whatever the case may be, this report provides yet another indication that the iPhone X is proving especially challenging to make.
Just one day before the device was unveiled, KGI Securities analyst Ming-Chi Kuo said iPhone X production totaled fewer than 10,000 units per day. In a follow-up research note, Kuo said the device is unlikely to achieve complete supply-demand equilibrium until at least the first half of next year.
All signs point towards overwhelming demand for the iPhone X. Earlier today, Kuo said pre-orders may exceed 40-50 million units. Lower adoption of the iPhone 8 and iPhone 8 Plus, and shorter lines at Apple retail stores, also suggest that many customers may be waiting for the iPhone X, but it remains to be seen.
iPhone X pre-orders begin Friday, October 27, followed by in-store availability in limited quantities starting Friday, November 3.
Article Link: iPhone X Production Supposedly Going Much Slower Than Apple Originally Planned
Just click bait...
I know. I got a black and waited for the white to come out. My kids gave me the white for Mother's Day and I handed down my black to my husband.
With the iPhone X, I don't care what color I get. Both look good. I think I might like the silver/white a bit more, but the space gray (it's basically black) looks good, too. In short, I'll order whatever they have in the size I need and be using mine on launch day, if my launch ordering streak holds.
If not, oh well.
Yeah, this is just a clickbait article meant to stir people up. Essentially the gist of it is "Apple is scared people don't want the iphone x so they're cutting back on production" when in reality, your hypothesis is more likely.
Apples last concern, is if the iPhone X won't sell. I think Apples main goal is to have a successful iPhone X launch in-store and online, where they can get as many shipments out successfully as they can to the consumers and ahead of schedule for those who have a later shipping date. That should be their goal.
Having worked in supplier management for years in a large engineering company, one of the most basic management activities is to hold weekly meetings with the supplier to mitigate/track the risk of new technology and part availability as it relates to phase in of the production cycle. I don't understand how "parts" could be a problem this late in the game unless:
1) supplier was lying to Apple
2) one of the supplier's suppliers was lying
3) natural disaster took out a key factory.
While harnessing Asia as a tech workforce has for the most part, worked out well, one negative aspect is the Asian mindset of "saving face" even if that means lying about how well things are going. I wonder if this is the root of it?
1) supplier was lying to Apple
2) one of the supplier's suppliers was lying
3) natural disaster took out a key factory.
While harnessing Asia as a tech workforce has for the most part, worked out well, one negative aspect is the Asian mindset of "saving face" even if that means lying about how well things are going. I wonder if this is the root of it?
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When they scrap the Touch ID under the screen at the last minute
Hope you're really lucky and fast on pre-order morning... demand on the X is insane and unlike any previous model. It's first generation, plus pent-up demand, plus low production yields, plus a lackluster 8/8+ release.
Me, if I see it in 2017 I'll consider that lucky, early 2018 is more realistic, even a few minutes after the store goes online.
I am getting so tired of MacRumors posting this garbage about 10,000 iPhone X units being produced per day. That may have been the case at some point, but there is no way that it is the case now. If they were only producing 10,000 units per day, but expect sales of 40,000,000 then it would take them nearly 11 YEARS to meet that demand. And that is just from the initial demand. Demand will continue beyond this quarter. So, if they are thinking that they can match that 40,000,000 in demand by the first half of 2018, that means that production has to either be (assuming production began in August:
[doublepost=1506355513][/doublepost]
Lackluster or not, the fact that that are selling any amount of the 8/8+ means that is unit sales that the X does not have to account for. This is affecting the ability to deliver the X, but in the opposite direction that your other items are impacting it.
- If first half of 2018 means fiscal year then that is by March 31st.
- 167,000 needed per day of manufacturing
- If first half of 2018 means calendar year then that is by June 30th.
- 120,000 needed per day of manufacturing
[doublepost=1506355513][/doublepost]
Lackluster or not, the fact that that are selling any amount of the 8/8+ means that is unit sales that the X does not have to account for. This is affecting the ability to deliver the X, but in the opposite direction that your other items are impacting it.
Artificial scarcity for sure, that, combined with a lack of demand for pre-orders I'd hazard a guess. Apple would never say:"We are slowing down production because the demand for the X isn't what we were expecting."
So instead they spin this into:"We are slowing down production because one of the component suppliers isn't producing the yield rate we expected."
I call fake news on this.
Hopefully if we order it at 12:01 we will get it by March. No way will I pay 5K for to have it early for the few scalper that are able to get them on launch day lol.
They're not intentionally slowing down anything. Some components are shipping faster than other components.
EX: Supplier A can make 100 cameras/hour. Supplier B can make 10 processors an hour. Apple can only make 10 iPhones an hour and would have to find some way to store 90 camera modules/hour until Supplier B could catch up.
They're asking supplier A to only deliver 10 cameras/hour so they don't have to warehouse the difference.
I think you're right about the US market, where the price of the X is the lowest and you have all sorts of carrier subsidies.
But the US market is just one piece.
Outside you have horrible prices - here where I live the 256Gb X is the equivalent of $1435 (and given the lack of expandable storage, this is the one to get), which is bonkers for a mobile phone. No carrier discounts either, the best you can do is like a 2-year payment program, but you have to absorb the whole cost, and Swiss carriers charge a lot as well, so this will really sting.
The X is playing in the Vertu market, i.e. niche phone to socially signal your wealth. I doubt it will sell that well. Look at Vertu.
This isn't a late in the game change. Apple already decided to release the X six weeks later than the 8/8 Plus. What other reason could that be aside from production issues? Don't you think they want to sell it as soon as they can? Also, since this "news" isn't coming from Apple, how can you judge the lateness of when it occurred. Only people internal to Apple know when they knew about the part shortage. This analyst is finding out about this from outside sources. There is no indication that this shortage just occurred. I'm sure Apple has been aware of this for quite a bit of time, otherwise again why else would they have scheduled the release so late in the year?
Ming-Chi Kuo was predicting exactly this back in this July 3rd article: https://www.macrumors.com/2017/07/03/ming-chi-kuo-iphone-omit-touch-id/
Ming-Chi Kuo said:
You're exactly right. I'd say it is likely so that they don't have to pay for the extra parts until they actually need them either.