Apple Supplier, Foxconn, Says iPhone 5 Demand Can’t Be Met

Apple’s iPhone 5 is a hot item and it doesn’t look like that demand for it will slow down anytime soon. Foxconn Technology Co., Ltd. (TPE:2354) recently admitted that they’re having a hard time keeping up with the huge demand for the popular smartphone.

Apple Supplier, Foxconn, Says iPhone 5 Demand Can't Be Met

Terry Gou, Foxconn Technology Co., Ltd. (TPE:2354)’s chairman explained, “It’s not easy to make the iPhones.“We are falling short of meeting the huge demand.  We just can’t really fulfill Apple’s requests.”

Michael Mauboussin: Here’s what active managers can do

michael mauboussin, Credit Suisse, valuation and portfolio positioning, capital markets theory, competitive strategy analysis, decision making, skill versus luck, value investing, Legg Mason, The Success Equation, Think Twice: Harnessing the Power of Counterintuition, analysts, behavioral finance, More Than You Know: Finding Financial Wisdom in Unconventional Places, academics , valuewalkThe debate over active versus passive management continues as trends show the ongoing shift from active into passive funds. Q2 2020 hedge fund letters, conferences and more At the Morningstar Investment Conference, Michael Mauboussin of Counterpoint Global argued that the rise of index funds has made it more difficult to be an active manager. Drawing Read More

It’s reported that the iPhone’s ultra thin design is more complicated to make. But Foxconn Technology Co., Ltd. (TPE:2354)’s words echo what we’ve known before. Apple Inc. (NASDAQ:AAPL)’s sales of the iPhone 5 have been low since launch weekend, thanks to the low supply. The company’s stock decreased from the peak of  $705.07 on launch day, to $561 on Wednesday.

Apple’s chief executive officer, Tim Cook, said, “Our output has improved significantly since earlier this month. I’m very, very pleased with the progress that we’ve made there; I’m pleased with the current level of output in what is the largest volume ramp in Apple’s history.”

It’s going to be a little while before Foxconn keeps up with the demand for the iPhone. Apple is a strong company that will continue to trail blaze the market. Last year, they lost the company’s co-founder and CEO, Steve Jobs. This year they released many new products, including the iPad 3, iPhone 5, iOS 6, iPad Mini, and iPad 4. The iOS 6 featured their first Maps application, but unfortunately, that venture flopped. Apple Inc. (NASDAQ:AAPL) has stumbled quite a bit this year, but it looks like the company is taking it all in stride.

It’s also important to remember that Apple Inc. (NASDAQ:AAPL) is still number one, and it doesn’t look like they’re going anywhere anytime soon. The one takeaway from all of this, is that Apple Inc. (NASDAQ:AAPL) may have underestimated the demand for their sixth generation smartphone. Hopefully, they can figure out where they went wrong and learn from their mistake.