iPhone 6S set to break records as Apple struggles with supply chain issues
Despite delivering a phone with mixed reviews and one that looks physically the same as its predecessor, it’s mostly good news for Apple today with the company reporting that it’s on track to beat records with their new iPhone 6S.
The phone, officially announced September 9 keeping with Apple tradition of annual updates, saw a range of “best ever” statements from Apple, and the specs were impressive, starting with the in-house designed A9 chip and other features.
“Customer response to iPhone 6S and iPhone 6S Plus has been extremely positive and preorders this weekend were very strong around the world,” the company said in a statement reported by CNBC. “We are on pace to beat last year’s 10 million unit first-weekend record when the new iPhones go on sale Sept. 25.”
Supply issues?
Stock in AAPL was up as much as $3 in trading during the day until a negative side of the story made headlines: yes, they’re selling record numbers but there may be supply issues in catering to that demand.
The iPhone Inventory Blog reported that the current wait time for the big-screen iPhone 6S Plus in China is running at three to four weeks, and two to three weeks for the 6S, which was confirmed in part by Apple who also added in their statement “As many customers noticed, the online demand for iPhone 6S Plus has been exceptionally strong and exceeded our own forecasts for the preorder period…We are working to catch up as quickly as we can, and we will have iPhone 6S Plus as well as iPhone 6S units available at Apple retail stores when they open next Friday.”
Analyst Ming-Chi Kuo of KGI Securities added fuel to the fire with a note issued to investors on Monday revealing that there was a serious problem with Apple supplier Minebea Co. Ltd. in regards to the backlight used in the phones.
“As a result, Kuo said, Apple has placed rush orders with competing supplier Radiant, in hopes of addressing the problem,” Apple Insider reported on the note.
Radiant Opto-Electronics Corporation has worked with Apple previously as a supplier of backlights for the iPad Mini, so the supply issue may be rectified within fairly short shrift, although it’s not simply a matter of hitting a switch to pump out components such as these.
After their initial surge, shares in AAPL settled back to $115.31, up 0.91 percent, or $1.10 for the day as of the close of trading.
Photo by SiliconANGLE
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