Challenges on the Supply of iPhone 5 could become a threat for Apple
Everything has its own challenges, be it big or small or great, but one thing I have come to learn in live is that, the greater you are, the bigger the challenges you face. Apple Inc is a great business empire; it seems the Cupertino based is now facing its own challenges.
A new report reveals that Sharp has been delayed in making available new displays for the said iPhone 5. The deal between Sharp and Hon Hai/Foxconn was reported this morning to have hit several hurdles, as the Japanese company has got on choice than to mortgage all its local offices and factories so as to remain in business until the deal is completed.
The mobile business is experiencing a lot in the last 18 months as Android device manufacturers are making huge orders from component suppliers. Apple and other makers are demanding for components such as Wi-Fi and 4G radios or flash memory from the same source.
As the fight between Apple and Samsung continues, and while Samsung is making sure that its product are not stopped from selling, Apple intends to go back to Samsung for processor supply as TSMC appears to have failed. Amounting to the fact that Apple holds 8 percent of Samsung’s business.
The management of Apple claims that each iPhone generation sells closer to double of its predecessors making them attempting source for about 170 million device components for the iPhone 5 in the next 12 months.
For Apple and the component suppliers, its great news, but the serious demand for key component is intensely high as a result of serious completion in the industry. But with a great number of makers going after the same components, the suppliers of Apple has a choice to choose the more lucrative deal as this will help in increasing their supply chain.
The idea of replacing Samsung at many of its components supply stream was been supported and Apple has been unable to completely replace its smartphone major rival shows that there is a great limit to the availability of components.
This may definitely affect the iPhone production, as proposed by the KGI Security analyst, Ming-Chi Kuo last week when he reduced his forecast on the shipment of the iPhone from a 147.6 million estimate to 130.6 million units on the basis of supply of the components. The iPad was not left behind when he reduced it from an estimated amount of 67.6 million to 66.3 million units, also the Macintosh shipments from an estimate of18.8 million to 17.6 million units.
Pacific Crest analyst said in a statement that “Apple is serious making moves to increase supply”. He said “iPhone 5 component supply and yields are improving substantially.”
The problems of getting adequate amount may affect Apple’s plan to accelerate the introduction of its new products to the international markets. It may also challenge the plan of the company to unveil the device through China Mobile, and this could affect its future growth.
Had it been that the company was able to scale through these supply issues, Apple will have a smile for its iPhone 5. According to a recent survey conducted by TechBargains, it shows that among 1, 332 people who took part, 38 percent of them are Blackberry users who have plans to purchase the new and upcoming iPhone 5 when it finally debuts, 22 percent Android owners and 64 percent iPhone 4S users are also planning to get the iPhone 5.
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