Apple Increases iPhone 7 Component Orders for Q4 2016

Apple has increased its part and component orders for the iPhone 7 series this year, with orders for the fourth quarter said to be between 20 and 30 percent higher than expected (via DigiTimes).

According to sources from Taiwan-based touch panel makers General Interface Solution (GIS), which is a subsidiary of Foxconn, increased touch panel orders from Apple mean the supplier will see revenues grow significantly in Q4 2016.

Initial demand for Apple's iPhone 7 series has been high, with excitement for the company's jet black color option and its larger dual lens camera-equipped handset leading to long wait times as regions struggle to re-stock following the first wave of orders.

Some analysts believe the timing of Samsung's exploding battery problem is leading a number of consumers returning defective Note 7 devices to choose an iPhone 7 over a like-for-like replacement. According to one online poll conducted by SurveyMonkey, 26 percent of Note 7 owners plan to use their refunds to switch to Apple's flagship phone, while 35 percent said they would keep the refund, without specifying what phones they would use in the future.

Those numbers compare to 21 percent who said they would swap for a different Samsung model, while only 18 percent said they planned to get a rectified Note 7, which remain in short supply.

Samsung claims its own data shows a much higher retention rate, and says about 90 percent of Note 7 owners had chosen to get a direct replacement, after the corrected devices became "widely available". So far, more than 60 percent of defective devices in the U.S. have been exchanged, the company said in a statement.

Shipments of iPhone 7 units are expected to reach 80 to 84 million units in the second half of this year, compared to 85 to 90 million iPhone 6s devices shipped in the latter half of 2015, according to original design manufacture sources.

Related Roundup: iPhone 7

Top Rated Comments

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spiderman0616

36 months ago

And those customers are going to be pleased. If you ignore all the usual Apple bashing that happens after an iPhone launch (especially from users on this site for some reason) the iPhone 7 is a fantastic upgrade. My only disappointment so far has been that I still can't pick up a pair of AirPods yet.
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So apple screwing over suppliers trying to reduce their orders for parts earlier on has come back to bite them? I hope so they deal with suppliers so badly. I love the products but apple is a stinky company right now.

This comment doesn't even make sense.

Rating: 9 Votes

spiderman0616

36 months ago

Yeap, will need to read between the lines of Apples report. But KGI is usually accurate.

KGI is usually accurate on products, but their accuracy on sales is spotty at best.
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This is possibly just damage control, several outlets and reports are already repeatedly claiming the iPhone 7 sales are down 20% or more on the iPhone 5 sales, so I've read. Will be an interesting results call, even more so if they refuse to disclose iPhone 7 sales numbers...

The Note 7 story has from what I've seen only been hyperbole generated by MacRumors. I mean how many customers actually took that survey monkey survey?

The Note 7 story is far from hyperbole limited to MacRumors. That's a ridiculous claim. The exploding battery story is everywhere all the time right now.

And Apple does not just order parts to calm the rumor mill down. They are supply chain masters and only order parts when they need to order parts.

Rating: 8 Votes

TrueBlou

36 months ago

This is just damage control, several outlets and reports are already repeatedly claiming the iPhone 7 sales are down 20% or more on the iPhone 5 sales, so I've read. Will be an interesting results call, even more so if they refuse to disclose iPhone 7 sales numbers...

The Note 7 story has from what I've seen only been hyperbole generated by MacRumors. I mean how many customers actually took that survey monkey survey?

.... While many others claim demand to be higher than for the iPhone 6s and some suggesting even greater demand than for the iPhone 6. That's the trouble with these reports, none of them actually have any actual idea of the reality.

Though so far every report I've seen of weak demand has been based on a certain KGI analysts comments. Need I say more :D

Oh, and the Note 7 hyperbole isn't just SurveyMonkey, Branding Brand among others have also said they've found support for Samsung wavering since the battery incident.

Rating: 4 Votes

1041958

36 months ago

Note 7 will have nothing to do with iPhone 7 sales. It sells a fraction of what the iPhone does, so even if every single returned Note 7 buyer got an iPhone 7 instead it would still only be an extra 1.4 million sales. The Note Series and Galaxy S Series combined are not even close to the iPhone.

Besides, the people who bought the Note 7 would be the hardcore fans who wanted it right away. They aren't going to switch for anything. They'll be happy to keep their inferior device that can't even keep up with a year old iPhone.

Rating: 2 Votes

Jax44

36 months ago

Yeap, will need to read between the lines of Apples report. But KGI is usually accurate.

Not on sales numbers.

Rating: 2 Votes

69Mustang

36 months ago

We also don't know how true the rumours were, or how successful Apple were if they were true.

As it relates to my quote, whether it's true or not is immaterial. I was only countering the blanket statement.

That doesn't change that fact that increasing orders tends to get you better volume discounts regardless of who you are.QUOTE]
The first line of my quote says the exact same thing. Not sure why you're repeating it.

every company tries to get lower prices. doesn't mean they will actually get it though.

My quote wasn't about whether or not a company actually gets lower prices. It was simply a counter argument to djcerla's blanket claim of lower volume gets higher prices. It's not always the case and Apple was rumored to do the exact opposite.

You are right though. Every company tries to get lower prices. I don't think that many try to get lower prices and drop the volume of their orders at the same time.

Rating: 1 Votes

FFR

35 months ago

It's 5 days ago. Major shifts in demand don't happen over the course of 5 days.

You do realize what thread your posting in?

Rating: 1 Votes

Nozuka

36 months ago

That is typical in most cases. However, earlier rumors had Apple asking for up to 20% price cuts on order volumes that were supposedly 30% lower.

every company tries to get lower prices. doesn't mean they will actually get it though.

Rating: 1 Votes

Black Magic

35 months ago

You have no clue about the Apple supply chain business outside of tidbits you hear on the internet and take as gospel. How about just worry about stuff that pertains to you like the product in your hands? Don't comment about supply chains and logistics because there is a reason you are at home on a forum while Tim Cook is running a billion dollar business.

Rating: 1 Votes

alexgowers

36 months ago

Rating: 1 Votes

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