Slash LaneFoxconn, the company's Taiwanese handset and iPod manufacturer, has recently ramped production of the new iPhone to 800,000 units per week, says TechCrunch, citing a person "close to Apple with direct knowledge of the numbers."
The build rate is said to be "above current full capacity" for the Foxconn facilities alloted to Apple's handset business, which has led to concerns that quality control may suffer. At the current rate, Apple stands to produce more than 40 million iPhone 3Gs over the course of twelve months.
That paces well ahead of analysts' estimates (1, 2, 3) and early reports that suggested Apple's initial iPhone 3G orders spanned only 25 million units through the expected lifespan of the product.
TechCrunch believes Apple's initial order was actually 40 million units over the course of the first twelve months, but is now hearing that "those numbers are being revised upwards sharply."
Apple said it sold 1 million iPhones in the first 72 hours the new iPhone 3G was put on sale, but has not provided an updated sales tally since. The iPhone is currently on sale in 23 countries, with 20 more expected to be added on August 22nd, and another 30 by the end of the calendar year.
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Apple stock at this level of around $155 is such a great buying opportunity, it's incredible. I am pretty sure that we will be over $200 by the end of the year. Over 30% profit growth, incredible new products, new revenue streams, $21 Billion in cash, no debt makes this a company I love owning. The iPhone sales are going to take Wall Street by total surprise. This may well be the last opportunity to get in at this level.
The build rate is said to be "above current full capacity" for the Foxconn facilities alloted to Apple's handset business, which has led to concerns that quality control may suffer. At the current rate, Apple stands to produce more than 40 million iPhone 3Gs over the course of twelve months.
Was it not a couple of years back when there were "sweatshop" allegations of Foxconn and the manufacturing of iPods? The heck with 'QC' if the manufacturer is said to be "above current fill capacity", what about the employees?! Will this be "Sweatshop, the Sequel". If Apple meant what it said, when it said, "Apple is committed to ensuring that working conditions in our supply chain are safe, workers are treated with respect and dignity, and manufacturing processes are environmentally responsible,? then maybe Apple should pay a surprise inspection every now and then for the welfare of the supply chain's employees... \
Where did Apple go wrong with their forecasting? Or maybe they've just discounted the mainstream for so long that when they join it (subsidised phones, latest technology) it puts all their models out of whack.
And it's definitely bad. Apple should be taking advantage of the positive environment for their phone to build momentum, which they need against the companies that compete with them. People who might have switched from some other product but couldn't buy may be lost forever.
It would be great if Apple sold 100 million phones next year, but they may have done themselves in with their strange pessimism.
Apple is very conservative with their forecasting. They cited several real issues that could affect their results, like the US economy. During a Presidential election quarter, where the press is going to be hammering the economy to make the situation more favorable to the democrat, this is advisable.
If Apple had crossed the 5 million sold line with the iPhone3G, I'm sure we'd have heard about it by now. They were very quick to tout the 1 million sold the first weekend, I'm sure they'd want to broadcast the next milestone as well.
Where did Apple go wrong with their forecasting? Or maybe they've just discounted the mainstream for so long that when they join it (subsidised phones, latest technology) it puts all their models out of whack.
And it's definitely bad. Apple should be taking advantage of the positive environment for their phone to build momentum, which they need against the companies that compete with them. People who might have switched from some other product but couldn't buy may be lost forever.
It would be great if Apple sold 100 million phones next year, but they may have done themselves in with their strange pessimism.
All of this forecasting must be based mostly on international sales, because the United States market is mostly a zero-sum game.
I guess I'm wrong. I find it amazing that that many people are willing to undertake the onerous contractual and provider obligations "buying*" an iPhone implies, especially in the current economy.
(*It's not ever really your phone, since you can't install your own software on it, or use it with any GSM provider. It's Apple's or AT&T's phone--you're merely leasing it.)