According to KGI Securities which reiterates the production issues we all hearing about the iPhone X, indicating only 2-3 million units will be available on its launch day.
Although the iPhone X supply chain will remain severely restricted at launch. As the analyst, Min-Chi Kuo states that despite there being light at the end of the tunnel for Apple’s iPhone X production issue, the company will still have only between two and three million units ready for launch time, worldwide.
It was already promised Apple’s latest flagship device goes on sale November 3rd but pre-orders are scheduled to begin next week on October 27. Rumors also suggesting the production of the iPhone X’s TrueDepth camera system has proven troublesome, though Kuo reports things are starting to level out. Another supply chain partner Murata said to also be struggling with producing the more complicated PCB required in the iPhone X.
Special materials, recipes, design, processes, equipments and tests are required for antenna FPCB, as the specifications for iPhone X antenna (supplied by Amphenol (US)) are higher than those of iPhone 8 and only Murata (JP) and Career Tech (6153 TT, NT$30.1, NR) can meet Apple’s requirements. Murata (originally with a 60% order allocation or higher) won’t be able to resolve its issues before 2Q18, and thus has been fully replaced by second supplier Career. We believe Career will ramp up in November, as capacity expansion takes time, and its materials, recipes, design, processes, equipments and tests are different from those of Murata.
In fact, as a result of the expected low numbers of available iPhone X handsets at launch, Kuo has revised his numbers for the fourth quarter. Now saying that he expects between 25 and 30 million units to ship. That’s downward from the 30-35 million expected previously. If you really want to get your hands on an iPhone X this side of Christmas, you might want to make sure you have those pre-ordering fingers ready come next Friday. Or else you are not going to get it on the first batch and you may be in for a long wait.
With just one week to go until preorders for the iPhone X begin. Be the one and first as this new report indicating that the “worst [will] soon [be] over” with regards to production difficulty. As a result, initial supplies will be very tight, as has been extensively rumored. Kuo says shipments will “pick up markedly” in the first quarter of 2018.
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