The good news for Apple is they have sold more than five million units of the iPhone 5 in three days following their Sept. 21 launch, but three weeks later, there seems to be a delay in productions.
Multiple sources are reporting a couple reasons on why the iPhone 5 is experiencing shortages, from both the inside and outside of the smartphone.
A reason for the shortage, according to Bloomberg, is the type of aluminum and "in-cell" display that has helped the smartphone become thinner and lighter compared to its predecessors. The in-cell display combines both the display and touch sensor as one component.
"Senior Apple managers told executives at Foxconn near the end of September to tighten production standards," according to a source to Bloomberg news, "who asked not to be named because the matter was private."
Barlcays Analyst Ben A. Reitzes stated, "We still believe Apple is facing significant production constraints due to a move toward in-cell display technology, which pushes a significant amount of units into the December and March quarters - a factor which limited sales this past weekend according to our checks."
The Wall Street Journal (WSJ) reported the shortage might be link to "a particular chip used to store data in iPhones called NAND flash memory."
Due to the aluminum, Bloomberg News noted the sales would have been higher at this point if they reverted back to its previous casing.
Reitzes added that once the shortage problem resolves, the iPhone 5 could sell more than 45 million units during the fourth quarter. RBC Capital Markets a reporting 49 million units to be sold, however, that number is down compared to the 57 million first projected.
The news adds to current problems Apple is facing involving the iPhone 5, such as the fights at the Foxconn Technology factory in China, Apple Maps, and a "purple flare" appearing on the camera,
- Contribute to this Story:
- Send us a tip
- Send us a photo or video
- Suggest a correction
