Uncategorized By PaulinePosted in
Demand was as expected for the iPhone 5 release, selling more than 5 million in the first 3 days. But many have thought this number could have been much higher had it not been for the companies inability to meet these high demands. Retails stores across the nation and world-wide are soldout of the product, and most customers are waiting three to four weeks to receive their newest gadget. Order an iPhone 5 at the moment, and you may not receive it until late October or even early November. The shortage has caused problems in several aspects, from repeat stock drops to labor unrest at one of Apple's major assemblers in China. So what's the cause behind the inability to provide customers with the iPhone in a timely fashion? One component being blamed is the in-cell display technology used to make the phone's screen much thinner and display much crisper. This technology is much more difficult to produce than previous displays used, and suppliers LG Display, Sharp and Japan Display may be having trouble keeping up with the high demands. There may also be a shortage of data storage chips called NANA flash memory. These are used in many other smartphones and by Apple competitors and there may not be enough to go around at the moment. A more recent hiccup with iPhone 5 production may lie in labor disputes. One of the main Apple assemblers, Hon Hai Precision Industry, known by its trade name FoxConn, has seen recent unrest from the stress of mass production. The WallStreet Journal reported that a full day of production was halted when as many as 4,000 workers went on Strike when they were forced to work on a national holiday. Other reports have stated that unrest was caused due to overly strict working conditions. FoxConn denied these claims. Even with the long waits, potential shortages, and possible lost wages from inability to supply the newest iPhone, Apple is still expected to shatter quarterly records with the release. At the moment the iPhone 5 is available in 31 countries, and demand has not slowed. Some analysts expect Apple to reach 10 million by the end of the month, as retail stores continue to sell products and add to their waiting lists of customers. Information Courtesy of: The WallStreet Journal, CNN, The WashingtonPost
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