Got a tip for us? Share it...

New in OS X: Get MacRumors Push Notifications on your Mac

Resubscribe Now Close

Apple to Add New Assembly Partners to Bolster Production of iOS Devices

Apple is set to add new manufacturing partners in Asia to handle production of its current line of iOS devices, reports The Wall Street Journal.

new_suppliers_iosdevices
The company will contract with Wistron to produce the cheaper iPhone 5c and Compal Communications to assemble the iPad mini, though the report does not say whether the latter will assemble the iPad mini or Retina iPad mini. Apple is reportedly expanding its supplier list as its primary supplier, Foxconn, is focused on producing the iPhone 5s.

Furthermore, Apple is reportedly said to be unhappy with the labor issues that have surrounded Foxconn over the past few years, along with the repair costs said to have come with the high return rate of defective iPhones:
Hon Hai, also known as Foxconn, has also been under scrutiny for its labor practices, creating a headache for Apple, they said. According to J.P. Morgan analyst Alvin Kwock, the high return rate of defective iPhone 5 smartphones also led to tensions between Apple and Hon Hai over which company would be responsible for repair-work costs.
Last month, Apple notified Pegatron and Foxconn that it would be reducing orders of the iPhone 5c, with another report stating that iPhone 5s production was to be boosted by 75 percent to meet demand. The iPhone 5s remains in very short supply, with carriers such as Verizon and T-Mobile indicating that they could have sold even more units of the device had supplies been readily available. The iPhone 5c, in contrast, has seen good supplies throughout Apple's distribution channels, allowing the company to meet demand.
"Apple has raised this quarter's iPhone 5S orders from Hon Hai as demand has been stronger than expected. But it takes time to boost production capacity and Apple can't find other assemblers to increase production to meet demand immediately," said the Hon Hai executive.
Meanwhile, Apple's upcoming iPad mini with Retina display is said to be in very short supply, with Apple CEO Tim Cook stating last week during the company's fourth quarter earnings call that it was "unclear whether we will have enough for the quarter or not" and a report last week stating that the company is turning to Samsung as low display yields for the Retina iPad mini continue. Currently, it is not known when specifically the second-generation iPad mini will be released, as Apple has only stated that the tablet will be out by the end of November.

Related roundups: iPhone 5c, iPhone 5s, iPhone 6, iPad mini

Top Rated Comments

(View all)

11 months ago

shortages should be a thing of the past, now when it occurs it's usually to generate hype


Not blaming you, but that kind of sounds like something the internet made up to hate on popular products.

The advertising industry in the US alone is in the hundreds of billions of dollars. Marketing creators are paid untold billions more. All that expenditure and work to get you to take the time out of your life to approach the company at retail and give them your money.

The thought that a company would take a hard-fought win in that realm, invite a customer into their store cash in hand, and intentionally turn them away and call it 'good business' is nonsensical.

Sometimes companies screw up projections. It's true! Telling the future is difficult. Sometimes they just don't have the money to bet big. In other cases, companies like Apple are producing new things in ways that no one has ever attempted in mass production using reserved capacity in as many advanced factories as are available to them. It's still hard to make 10 million phones in a weekend. Sorry.
Rating: 5 Votes
11 months ago

shortages should be a thing of the past, now when it occurs it's usually to generate hype


Apple needs to generate hype? Hardly. Apple wants to sell products. Kind of hard to do if the product isn't available. :rolleyes:
Rating: 5 Votes
11 months ago

Most of the Apple shortages are intentional. Because when a product is not available, it is more present in the media, and more hype is created...etc....


And the fairy tale lives on.
Rating: 3 Votes
11 months ago

With the holidays coming up I'm sure Apple wants to put retina minis under as many Christmas trees as possible.


+1 This "intentional shortage" trope gets trotted out during every release. The hype is generated at the product announcement. Once release day comes around it is produce..produce..produce as fast as the wheels will turn. There is just no reason for Apple to play any sort of games to get publicity. Heck, go look at their stores. They are packed even when there isn't a new product. They've got the audience. The point is to get products in their hands ASAP and then start making money off the iTunes and App store as well.
Rating: 2 Votes
11 months ago

how about moving some of this to the US?

With unemployment so high, I'd assume there are plenty of people here who would assemble Apple devices for minimum wage.

They could most likely still make billion $ profits each quarter, but shareholders want more, more, more....regardless of the ultimate price.....

----------



Look at Samsung!

They manage to sell something like 80 million S4 models without significant shortages.

Most of the Apple shortages are intentional. Because when a product is not available, it is more present in the media, and more hype is created...etc....

Sure there are yield problems that can occur, fine, but if you look at the new iMac that was released last year after like 1.5 years of no upgrade, there is no excuse for that limited supply at launch.


Again, how does not having a product available sell more products? If the iPad mini isn't available someone might chose a Nexus or Kindle instead. Apple doesn't need to generate hype. They don't need to create artificial shortages to get people to buy their products. I know people who push this meme think they're really clever but they're not. Bottom line is Apple's goal is to sell products. They can't sell something they don't have, and they can't assume customers will just wait until it is available.
Rating: 1 Votes
11 months ago

how about moving some of this to the US?

With unemployment so high, I'd assume there are plenty of people here who would assemble Apple devices for minimum wage.

They could most likely still make billion $ profits each quarter, but shareholders want more, more, more....regardless of the ultimate price.....

----------



Look at Samsung!

They manage to sell something like 80 million S4 models without significant shortages.

Most of the Apple shortages are intentional. Because when a product is not available, it is more present in the media, and more hype is created...etc....

Sure there are yield problems that can occur, fine, but if you look at the new iMac that was released last year after like 1.5 years of no upgrade, there is no excuse for that limited supply at launch.


Samsung didn't sell anywhere NEAR 80 million S4 models. The CEO of Samsung claimed to have sold only 40 million. And their CEO isn't exactly trustworthy even on that number.

http://www.ibtimes.com/samsung-galaxy-s4-hits-40-million-sales-mark-ceo-jk-shin-insists-device-not-trouble-amid-slowing

I think you are confused with the fact that people were expecting the S4 to hit 80-100 million but unfortunately for Samsung, the S4 has been a huge disappointment. It obviously won't come anywhere close to expectations and their stock is being punished severely for it.
Rating: 1 Votes
11 months ago


Look at Samsung!

They manage to sell something like 80 million S4 models without significant shortages.

Most of the Apple shortages are intentional. Because when a product is not available, it is more present in the media, and more hype is created...etc....

Sure there are yield problems that can occur, fine, but if you look at the new iMac that was released last year after like 1.5 years of no upgrade, there is no excuse for that limited supply at launch.


When it comes to the touch ID and iPad mini's Retina display, I think there is some degree of supply constraint.

I honestly believe the mini 2 wasn't originally slated to have a retina display at 1st. They felt they could skate by with only internal upgrades for one more revision. But the offerings of the competition forced apple to move up the mini retina release. Also, the construction of the touch ID is a bit much, compared to the classic home button. I can see that as a constraint as well. There was nothing holding back the 5c, and that production was shifted to better value 5s.
Rating: 1 Votes
11 months ago
Why is it always referred to as the "cheaper iPhone 5c"? I didn't think the word cheaper was part of its official name. To be consistent, why not also refer to the other iPhone as the "more ostentatious iPhone 5s dipped in gold"?
Rating: 1 Votes
11 months ago


Samsung sold 20 million S4's over the first 100 days, and almost 40 million, not 80 million, by the end of six months. Not exactly a major accomplishment. S4 sales have tapered off so much that so e major carriers around the world have dropped it.


Not exactly a major disappointment either.
Rating: 1 Votes
11 months ago

Except. Apple has plenty of iPad Mini's right now. Plenty of iPad 2's. It is only the Retina iPad Mini that is constrained. Someone even considering a Nexus or Kindle is more likely to gravitate toward the lower price points anyway.

Someone who wants an iPad Mini Retina is willing to wait for what they want. The few folks Apple loses to spontaneous sales to other brands or styles, is something they can't actually work any harder to overcome. They already released the product early (late November) in light of what is produceable at all.

It will take a while to reach supply-demand balance and some folks will have to wait 3 weeks to get theirs. But remember the majority of folks are used to the "old days" when most mail order products took weeks to get.

Rocketman

My point is the idea that Apple has a stockpile of retina minis sitting somewhere or is telling their manufacturing partners to produce less than demand so a website can show out of stock is ridiculous. With the holidays coming up I'm sure Apple wants to put retina minis under as many Christmas trees as possible.
Rating: 1 Votes

[ Read All Comments ]