A quick glance around the biggest consumers of Apple products across North America and Europe would suggest that iPhone X delivery estimates have improved to 1-2 weeks throughout a whole host of countries.
While some may choose to spin that as a sign that demand is waning, KGI Securities analyst Ming-Chi Kuo instead believes that the shorter wait times are indicative of Apple’s efforts to improve the supply chain, getting iPhone X handsets into the hands of customers more quickly than previously anticipated.
According to Kuo, Apple and its suppliers have been able to ramp up production levels to new heights for the iPhone X. That has seen Foxconn increase its production to around 450,000-550,000 units per day compared to just 50,000-150,000 in the days leading up to the big iPhone X launch a couple of weeks ago.
(1) Hon Hai’s daily shipments of iPhone X have climbed to 450-550k units, up from 50-150k units 1-2 months ago; (2) shipments of Career’s LCP LTE antenna will likely grow 100% MoM in both November and December; and (3) production yield of Dot projection module, made by LG Innotek (KR) and Sharp (JP), has moved quickly above 80-90% or higher from below 60% 1-2 months ago.
Kuo reports that the increase in production has been possible following suppliers’ ability to get to grips with part manufacture that was previously proving troublesome. As a result, Kuo also now believes that shipments of the iPhone X could be between 10% and 20% more than was previously predicted for the fourth calendar quarter.
Apple’s own financial guidance for the quarter has it expecting record numbers, and being able to get iPhone X handsets into the hands of buyers as quickly as possible will certainly do nothing to harm the possibility of that coming to fruition.
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