As if to silence the cries of dozens of critics prior to its official release date, the iPhone 5 is still selling in such vast quantities that even the leviathan that is Foxconn cannot keep up with the demand. And while this may appear to be nothing other than positive news in terms of iPhone 5 reverence and general appear to the world’s key markets, analysts are expressing growing concern as to Apple’s future earnings.
“We can’t really fulfil Apple’s requests. Our shipments are insufficient… given the huge market demand,” saidTerry Gou, chairman of Foxconn speaking this Wednesday.
He also went on to state that the intricate design of the recently released iPhone 5 was making it difficult to produce in the vast quantities required, though stopped short of clarifying why this was the case.
He also failed to answer questions as to whether or not Foxconn was currently outsourcing iPhone 5 assembly duties to other plants across the region.
Apple’s iPhone has been the company’s primary driver of revenues ever since the first model was released several years ago. Along with the iPad which is also assembled primarily at Foxconn, Apple has been able to maintain a decisive lead over the market in terms of overall device sales and general reputation with the consumer.
Executives at Apple had already admitted that demand was putting a strain on available iPhone 5 supplies, but that all efforts were being made to keep up and catch up. Q3 profits for Apple were anything but shabby, with net profits hitting $8.2 billion following extensive jumps in both tablet and Smartphone sales.
However, recent weeks have seen share values in Apple fall considerably. Along with increased competition for key rivals such as Samsung, investors are becoming concerned that Apple will not be able to meet iPhone 5 demand for some time to come.
Some had suggested that the iPhone 5’s similarity to the iPhone 4S would prove to be its Achilles heel, though it now appears that its very reputation and prowess could prove to be its downfall – at least in the immediate future.