Apple fans may have to wait for weeks to get the new iPhones as Apple’s major assembler Foxconn appears to be struggling to boost its production to meet strong demand.
Foxconn has continued to hire more workers to assemble the two new iPhone models at its largest production site in Zhengzhou, north central China, according to people familiar with the matter. The company has more than 200,000 workers in the Zhengzhou site, dedicated to just making new iPhones and key components such as metal casings.
The Taiwan-based manufacturer, which has more than one million workers in China, is operating about 100 production lines around the clock in Zhengzhou. The challenge is to manufacture two complicated new iPhones on a large scale at the same time because Foxconn is the sole assembler of the 5.5-inch iPhone 6 Plus. It also makes the majority of the iPhone 6 that comes with a 4.7-inch display, the people said.
“For iPhone 6 Plus, we are still ramping up the production line. Another reason for the limited supply is the shortage of 5.5-inch displays,” said the person.
The output rate of 5.5-inch is still only around 50%-60%, which means display makers have to scrap almost half of the substandard output, said a person at a display component supplier.
The person said the output rate of the 4.7-inch display is better at 85%.
The production is complicated because the displays use in-cell technology. This allows the screens to be thinner and lighter by integrating touch sensors into the liquid crystal display, making it unnecessary to have a separate touch-screen layer, according to people familiar with the matter.
Foxconn Struggles to Meet New iPhone Demand - Digits - WSJ
