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Sourcing, Product Mix Hurting Apple

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Sourcing, Product Mix Hurting Apple

According to various reports, Apple is experiencing some production scale-backs and supply chain challenges related to its iPhone 8 and X models. The iPhone 8 was unveiled late last month to a somewhat underwhelming response.

The lack of enthusiasm is being traced to two underlying causes. First, the phone is relatively expensive ($700) and doesn’t offer significant feature upgrades. The other, much more prominent phenomena, is the highly anticipated release of the iPhone X on October 27, with initial shipments scheduled for November 3. Regardless of the reasons, production of 8 models has been scaled back by more than 50 percent, according to Taipei’s Economic Daily News.

The X will offer a significant number of new features, including a full-screen display, “Super Retina” resolution, a reinforced glass design, a facial recognition system that uses a 3-D scanner to unlock the handset, and wireless charging features. It’s also expected to carry the largest price tag ever placed on a mass-produced phone – $999.

However, there might be some snags in Apple’s plans for the X launch as well. Bloomberg is reporting that Apple is running into some issues securing enough of the specially fabricated glass panels that will play a vital role in the phone’s composition and wireless charging capabilities.

Analysts are also concerned about the number of phones Apple currently offers and is trying to support. It’s assumed that many of these questions will be answered once the X is released and a better gauge of iPhone demand can be compiled.

 

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