iPhone 5: Foxconn And Hon Hai Confirm Production Delays Due to High Demand?

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It has been months since Apple launched its latest edition of the iPhone, namely iPhone 5, but while the product garnered a huge amount of customers, many customers are still waiting to get their hands on the pre-ordered iPhone 5.

According to the two Chinese companies that manufacture the product, Foxconn and Hon Hai Precision Industry, the enormous demand for the iPhone 5 is increasing pressure on the production. However, whether the high demand is the cause for the production delay is uncertain.

Hon Hai Precision Industry and Foxconn chairman Terry Gou told PC Mag, " Market demand is very strong, but we just can't really fulfill Apple's requests."

On Saturday, CNET reported that wireless providers indicated that the "ship-by-date" for the latest iPhone was listed as one week away, but the Apple website shows that production could take up to three or four weeks more.

BTIG Analyst Walter Piecyk told CNET, "Apple might be trying to induce their customers to reserve a phone for next day pick up at one of their retail stores in the hopes of capturing additional sales...The reservation policy is the same for the iPad mini, but we have been able to find iPad mini inventory increasingly available in the handful of stores that we called."

A new report by a Chinese company, Hon Hai Percision Inc., which assembles Apple's iPhone 5 says that the delay is due to its new avatar.

The company released a statement to the Wall Street Journal as follows, "to make it light and thin, the design is very complicated," said an official at the company who declined to be named. "It takes time to learn how to make this new device. Practice makes perfect. Our productivity has been improving day by day."

According to CNEt, this shortage of iPhone units is due to the phone's new display technology.

Apple depends on two companies- Sharp and LG Display, to produce its display screens. The latest display combines in-cell touch sensing technology, whereas the display of the 4S had a separate touch-screen and separate display screen. The two companies say the new technology of the iPhone 5 display has posed challenges for a speedy production. In addition, the new display costs seven dollars more than that of its predecessors. The new display costs the company $44 per piece, while the 4S cost $34.

According to the Apple website, customers could be waiting up to a month to get the latest iPhone. The website says there is a three to four delay in shipment.

On the other front, a Wall Street Journal article, accessible only through subscription, said Apple has already started manufacturing the mini-tablet, which is rumored to be released later this month or early next month.

According to ComputerAndVideoGames.com, "Apple Inc.'s Asian component suppliers have started mass production of a new tablet computer smaller than the current iPad, people with knowledge of the situation said, as the Silicon Valley company tries to stay competitive against rivals such as Google Inc. and Amazon.com Inc.that are offering smaller, less-expensive alternatives to the iPad."

A report from CNN Money suggested that Apple is likely to send event-invitation to its highly anticipated iPad Mini by October 23.

Philip Elmer-DeWitt for CNN Money doesn't stop at giving the launch a specific date, but also puts a specific date when the iPad Mini hits the shelves, which according to the article is on November 2.

It comes as no surprise that Apple refused to comment.

On the other front, a Wall Street Journal article, accessible only through subscription, said Apple has already started manufacturing the mini-tablet, which is rumored to be released later this month or early next month.

According to Computerandvideogames.com, "Apple Inc.'s Asian component suppliers have started mass production of a new tablet computer smaller than the current iPad, people with knowledge of the situation said, as the Silicon Valley company tries to stay competitive against rivals such as Google Inc. and Amazon.com Inc.that are offering smaller, less-expensive alternatives to the iPad."

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