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Apple-Watch-Sport-Blue-250x250.jpeg
A new report out of Taiwanese publication Economic Daily News [Google Translate] claims that Apple has cut the expected production and shipping targets of the Apple Watch by half due to manufacturing challenges leading up to the launch of the device. (via GforGames).

The company initially planned to manufacture between 2.5 and 3 million units of the wearable per month, following its launch on April 24. A claim by Economic Daily News now states Apple has lowered expectations to produce 1.25-1.5 million Apple Watches every month.

The website cites sources within Apple's supply chain, pointing towards production snafus on the manufacturing of the Apple Watch's AMOLED display as the main culprit behind the tempered production expectations. Although it has yet to be confirmed by Apple itself, Economic Daily News claims the introduction of a new type of display used in Apple's manufacturing processes - unlike the traditional LCD screens of iPhones - has resulted in a slower production rate on the Apple Watch leading up to the device's launch.
One of the reasons for this change in plans apparently lies in manufacturing issues with the display (which is being produced by LG), leading to 30-40% yield capacity. Plastic OLED panels use PET (polyethylene terephthalate) instead of a glass substrate, thus giving them flexibility and lightweight. The only problem however, is that manufacturing plastic OLEDs requires a different method of creating a vacuum between the OLED panel and the plastic substrate, other than the traditional water jet vacuum pumps. And because PETs are very sensitive to humidity it looks like manufacturing the Watch's display is a more complicated process than initially expected.
The source also points to slow production lines thanks to manufacturer Quanta, who has more experience in laptop manufacturing than in smaller devices like the Watch. According to Economic Daily News, Apple is already looking at expanding manufacturing options by involving Foxconn in the wearable's production process in the future.

Similar production-related stories have circulated before the launch of other Apple-related products in the past. Due to the high volume of such reports leading up to a device's launch, and no official word from Apple, today's report out of Economic Daily News remains sketchy at best.

Article Link: New Report Says Display Challenges Have Cut Apple Watch Shipments in Half
 

thekeyring

macrumors 68040
Jan 5, 2012
3,493
2,154
London
Not worried at all about this. Organisation is Tim Cook's strong point, so there will be plenty of Apple Watches to go round :)
 

NT1440

macrumors Pentium
May 18, 2008
15,037
22,002
EVERY apple product has "anonymous sources" that claim manufacturing issues, then lo and behold they don't happen.

Anyone remember Jim Cramer laying out how hedge funds spread misinformation to short a stock?

http://appleinsider.com/articles/09/03/13/jon_stewart_exposes_apple_stock_manipulation


"Stewart played clips of Cramer describing — shortly before the iPhone was first announced — how hedge fund managers could spread lies about the product through either gullible or willing media sources, creating either fear or excitement that would distort the company's stock, allowing the fund manager to profit."

"Fomenting the market against Apple, however, "is very easy, because the people who write about Apple want that story. And you can claim that it is credible because you spoke to someone at Apple, because Apple isn’t in [a position to comment on unannounced products]. It is an ideal short."
 

mbh

macrumors 6502
Jul 18, 2002
400
73
What was the last Apple product that didn't have dire predictions about production issues?
 

MH01

Suspended
Feb 11, 2008
12,107
9,297
EVERY apple product has "anonymous sources" that claim manufacturing issues, then lo and behold they don't happen.

Anyone remember Jim Cramer laying out how hedge funds spread misinformation to short a stock?

http://appleinsider.com/articles/09/03/13/jon_stewart_exposes_apple_stock_manipulation


"Stewart played clips of Cramer describing — shortly before the iPhone was first announced — how hedge fund managers could spread lies about the product through either gullible or willing media sources, creating either fear or excitement that would distort the company's stock, allowing the fund manager to profit."

"Fomenting the market against Apple, however, "is very easy, because the people who write about Apple want that story. And you can claim that it is credible because you spoke to someone at Apple, because Apple isn’t in [a position to comment on unannounced products]. It is an ideal short."

This.

Before the launch of an apple product we always get rumors that there will be limited supplies . Maybe it's a tactic to drive strong pre-orders :)
 

Poochi

macrumors 6502a
Jul 30, 2010
886
262
Toronto
Case #1: fake report to ramp up demand due to "perceived" scarcity

Case #2: real production problem - best wait until version 2 for the issues to be ironed out (buying right away means you may be getting a "beta" product)
 

thekeyring

macrumors 68040
Jan 5, 2012
3,493
2,154
London
Just like there were plenty of iPhone 6s and 6 Pluses to go around ?

As they sold over 10,000,000 in the first weekend, I'd say yes, Apple did really well making tons of them.

I know there were lots of people who wanted them who couldn't get one, but that's only because of the even higher number of people who wanted one.
 

pdaholic

macrumors 68000
Jun 22, 2011
1,874
2,709
Every release has some rumor of supply constraints. Great reason to get people to purchase early!
 

nutmac

macrumors 603
Mar 30, 2004
6,102
7,493
I guess I will be pre-ordering on April 10 at 12 am PDT for a model that I think I will be satisfied with (42mm Space Gray Aluminum Case with Black Sport Band) and SCHEDULE an appointment at the store to confirm.
 

NT1440

macrumors Pentium
May 18, 2008
15,037
22,002
This.

Before the launch of an apple product we always get rumors that there will be limited supplies . Maybe it's a tactic to drive strong pre-orders :)

I don't think it's Apple. This happens too constantly with every new product I've seen. Always citing "yield issues" for "sources close to the matter". Things that sound like an insider would have to know because of the jargon...but anyone with a layman's understanding of supply chains and manufacturing could pull these same claims out of their ass.
 

AdeFowler

macrumors 68020
Aug 27, 2004
2,319
362
England
They would have projected the manufacturing yields way before they started production so any major problems found once the production line is up running would result in the snafu.

I'm just being pedantic. Situation normal, implies that this is what normally happens, this is more like situation not what was projected.

Ignore me, it's been a long day :confused:
 

GuitarDTO

macrumors 6502a
Feb 16, 2011
687
110
Supply constraints. Surprise surprise. Also known as, intentionally driving up demand by creating the illusion of "I have to have it now!". Apple are experts at this. They will have the supply/demand curve figured out just in time for the holiday sales rush.
 
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