Apple faces constrained iPhone SE supply on surprise demand

Apple CEO Tim Cook during Tuesday's quarterly conference call said supply of its latest iPhone SE model is constrained due to surprisingly high demand from users who want the latest technology in a small package.

Cook said the device, launched in in March, is attracting not only new iPhone users and switchers, but also existing customers looking for standout iPhone features in a 4-inch form factor. Industry watchers largely dismissed the SE as a down-market money grab, but interest has outperformed even Apple's own expectations.

"We're thrilled with the response that we've seen on it," Cook said of iPhone SE. "It's clear there's a demand there that's much beyond what we thought, which is why we have the constraint that we have."

He added that Apple is working to produce to fulfill demand, but failed to offer a timeline on an expected equilibrium. Since iPhone SE debuted last month, full sales results were not reflected in today's earnings report.

Today's revelation runs counter to recent reports claiming Apple faced an uphill battle with iPhone SE sales. Earlier this month, however, circumstantial evidence pointed to overwhelming interest in the device, which saw stock-outs and shipping delays at a number of retail outlets, including Apple's own brick-and-mortar and online stores.

30 Comments

ireland 17435 comments · 18 Years

About 8 years ago

Best iPhone I've ever owned.

I would like to see iPhone 7 offered in three sizes however. Not that I'd get one, but those who like 4" phones should be offered the latest flagship with 3D Touch and all the other features—even if the 4" needed to be thicker than the larger screened devices to provide same feature set.

mac_128 3452 comments · 12 Years

"We're thrilled with the response that we've seen on it," Cook said of iPhone SE. "It's clear there's a demand there that's much beyond what we thought, which is why we have the constraint that we have."

No Tim, the reason you have the supply constraints you have is because you insist on making 16GB the base configuration. The SE customers are smarter than that. There's plenty of 16GB SEs out there. The supply constraint is on the 64GB models.

Every Apple Store in Los Angeles was out of every 64GB model for every carrier, but they had loads of 16GB models they couldn't give away.

sflocal 6133 comments · 16 Years

mac_128 said:

No Tim, the reason you have the supply constraints you have is because you insist on making 16GB the base configuration. The SE customers are smarter than that. There's plenty of 16GB SEs out there. The supply constraint is on the 64GB models.

Every Apple Store in Los Angeles was out of every 64GB model for every carrier, but they had loads of 16GB models they couldn't give away.

So what? The phone's been out for a month. Assuming Apple did truly underestimate demand on the 64GB model, they will ramp up that production so in a couple more weeks it will be a non-issue. I'd rather not put out enough of everything, than to have too much of one thing and have a glut of them.

sflocal said:

mac_128 said:

No Tim, the reason you have the supply constraints you have is because you insist on making 16GB the base configuration. The SE customers are smarter than that. There's plenty of 16GB SEs out there. The supply constraint is on the 64GB models.

Every Apple Store in Los Angeles was out of every 64GB model for every carrier, but they had loads of 16GB models they couldn't give away.

So what? The phone's been out for a month. Assuming Apple did truly underestimate demand on the 64GB model, they will ramp up that production so in a couple more weeks it will be a non-issue. I'd rather not put out enough of everything, than to have too much of one thing and have a glut of them.

So what? Apple is clueless about what the base storage should be on their phones. I'm not necessarily advocating for the eradication of the 16GB phone because it definitely has a place in the worldwide Apple ecosystem, especially in an entry level phone. But the fact that in the US, Apple miscalculated the demand for 64GB over 16GB so badly is very telling.

wizard69 13358 comments · 21 Years

mac_128 said:

"We're thrilled with the response that we've seen on it," Cook said of iPhone SE. "It's clear there's a demand there that's much beyond what we thought, which is why we have the constraint that we have."

No Tim, the reason you have the supply constraints you have is because you insist on making 16GB the base configuration. The SE customers are smarter than that. There's plenty of 16GB SEs out there. The supply constraint is on the 64GB models.

Every Apple Store in Los Angeles was out of every 64GB model for every carrier, but they had loads of 16GB models they couldn't give away.

Apples ignorance here astounds me. First they missed completely that many of us have been waiting for a decent small phone for years now. That in itself is pretty damning of Apple management. Then they carry on the stuoidity of offering devices with way to little storage and far too costly storage upgrades. Frankly I think they are out of touch.