IBM G5 manufacturing issues ‘will be over by the end of the quarter’

Apple executives also disclosed yesterday that problems in IBM’s manufacturing of the G5 microprocessor were the reason for the delay in shipments of the new iMac model.

“But in an interview yesterday, Mr. Jobs said that the problem was temporary and that he was confident that I.B.M. would resolve the problems by the end of the current quarter,” Laurie J. Flynn reports for The New York Times. “Like much of the semiconductor industry, I.B.M. is making the transition to 90 nanometer wafers, the latest in PC chip manufacturing.”

“On Tuesday, Intel executives disclosed that the transition to the new manufacturing process had caused inventory problems,” Flynn reports. “‘The semiconductor industry has a lot of problems in its move from 130 to 90 nanometers,’ Mr. Jobs said. ‘This is just a speed bump. I.B.M. has told us it will be over by the end of the quarter.'”

“This month, Apple announced that the much-anticipated new version of its iMac consumer PC would be delayed into the fall, meaning that the new system would not be ready in time for the back-to-school shopping season,” Flynn reports. “Analysts, however, said they were not concerned that the delay would cause any lasting problems for Apple. ‘Not having a new desktop for back-to-school is a problem, but not a big one,’ said Charles Wolf, an analyst at Needham & Company, which owns Apple shares. ‘Many students seem to be buying notebooks.'”

Full article here.

30 Comments

  1. Apple are winding down their business and going into liquidation. That’s the only explanation I can think of, so it MUST be correct. I know everything. Longhorn is coming out in 2006, if Apple haven’t already shut up shop, they will do when they see the power of Longhorn.

  2. Perhaps missing the back-to-school opportunity may not be a problem for the long run, but it sure will be for the next quarter. Too bad Apple couldn’t get this out in time. But if IBM can’t get the chips to them, what do you do? Releasing yet another G4 upgrade for the iMac was unacceptable, unless the price was dropped quite dramatically.

  3. Based on other comments made, there were heat issues as well but they were not the prime problem and were resolved. No one individual at IBM has his “job on the line” because of poor yields of 90nm G5 chips. It’s part of the business when ramping up new technology. If that attitude prevailed, there wouldn’t be new technology at all. It’s also been reported that Intel and AMD are having problems with their 90nm chips as well.

  4. The heat thing was just more bullsh*t from Apple Insider, which has been full of quite a bit of it lately. IBM is just having problems and they have been for a few months now. Let’s just hope they’re right when they say all of the issues will be behind them by the end of this quarter.

  5. iggyb,

    iMacs are not in the “back to school” area. Those are basically consumer machines. K-12 purchase eMacs and college students buy laptops. This reference to missed opportunity is being parroted by people because some writer said it. It is not a factor. Universities are purchasing lots of XServes and PowerMacs for labs however.

  6. End of the quarter? End of the quarter?!!

    Does Apple plan to sell five G5 iMacs until IBM resolves this manufacturing issue? Perhaps another generation of G4 iMacs would have been better for everyone as IBM made promises it could not deliver. At the very least Apple should have announced a new eMac as an alternative for those who were planning to buy iMacs at this time of the year.

  7. New G5 iMacs will go on sale in September, about 60 days from now. Apple did what it could. For mabt people the eMac is not an alternative. Stop complaining people. It won’t get you a new iMac any faster. Things are what they are. Apple stock is going through the roof at the moment. Wall Street doesn’t seem to be worried.

  8. Just wondering,

    If eMacs are for K-12, laptops for college students, and XServes and PMs for universities, coporations or pro users, what is the target market for iMacs?

    I guess they’re for the “average” computer user(?) as my wife has an iMac…

  9. iMacs have been basically a consumer/small business model. Schools have shied away from the flat panel version because of breakage issues with kids. The eMac was developed to circumvent those issues. Remember when it came out it was an educational model only. It even had covers on the built in speakers so kids couldn’t shove pencils and other objects in them. (I heard peanut butter was a favorite).

  10. all the macs need to go to a G5 chip (or better;)) to get the most out of Tiger and all the newer programs that will come out in 64 native code. I hope the layman iMac buyer can remain patient so that this can happen.

  11. If the G5 iMac pack as big of a WOW as we have seen in the past things are only going to be getting better. I hope they can get the G5 in a Notebook sometime though. I have been waiting a year already!

  12. AjaxBruno I do not think that OS X 10.4 requires G5 processors to do all that it does. From the demo we saw it appears that a next-gen graphics card will be more crucial to run the new OS properly.

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