“Apple revealed on its most recent earnings call that its latest iPhone, the 4-inch iPhone SE, is seeing greater-than-expected demand. This, unfortunately for the iDevice maker, has led the company to be, in the words of CEO Tim Cook, ‘supply constrained,'” Ashraf Eassa reports for The Motley Fool.
“On the call, Cook didn’t give an indication as to when the company would eventually reach supply/demand balance for these iPhones, only saying that Apple will ‘be able to work [its] way out of this at some point,'” Eassa reports. “After recently checking Apple’s online store, it looks as though the company has yet to reach supply/demand balance for these products.”
“Although demand is clearly better than Apple had expected, the fact that these supply issues haven’t been cleared up nearly two months following the launch of the device raises some serious red flags,” Eassa reports. “I think at this point Apple is feeling a bit stunned at how poorly the iPhone 6s/6s Plus were received in the marketplace. The fact that the company is having to take all of these actions to bring down channel inventories is probably making Apple uncomfortable, and it’s almost certainly wreaking havoc on its suppliers. My best guess is that Apple is treading very lightly, hoping to manage iPhone SE builds, internal inventories, and ultimately [keep] channel inventory levels very lean.”
Read more in the full article here.
MacDailyNews Take: Death to the “S.”
Apple, enough with the stupid iPhone ‘S’ naming already.
iPhone “S” years usher in hugely significant features, such as oleophobic displays, significant GPU improvements, world phone capability, Siri personal assistant, video stabilization, panorama photos, 64-bit processors, TD-LTE support, Touch ID, and 3D Touch, among other improvements and additions. Each year’s iPhone deserves its own number. By not doing so, Apple is shooting itself in the foot; handicapping iPhones with an “S” every other year. Why Tim Cook or Phil Schiller haven’t put an end to this stupid – yes, stupid – “S” naming is inexplicable. Why don’t you just name it “iPhone No Big Deal This Year,” Tim and Phil?
Here’s what you say onstage and in the press release when there’s no “iPhone 7s” and you jump directly from iPhone 7 to iPhone 8: “The improvements are such that the new iPhone deserves its own number.” Period. Done. Mission accomplished. It’s your naming convention, Apple, and you can correct your stupid mistake at any time.
And from last month:
Apple should strive to execute annual iPhone updates, in three display sizes if the SE is successful (which we think it will be), and drop the off-year “S” model concept. Apple is certainly big enough and rich enough to do a new iPhone family each and every year. Apple should have killed the tock year “S” model idea years ago.
What’s happened with iPhone is painfully obvious: Apple was at least a year (more likely two years) late with properly-sized iPhones. When iPhone 6 and iPhone 6 Plus finally, blessedly materialized, buyers quite literally stampeded to get them. Then, when faced with such a “tough compare” this year, Apple was still sticking with their ill-conceived “S” model concept – making the tough compare much, much tougher.
The “iPhone 7” family – three models with the same case design and all with 3D Touch — comprised of the 4-inch iPhone 7 SE, the 4.7-inch iPhone 7, and the 5.5-inch iPhone 7 Plus — should have debuted last September. That would have taken care of the current tough compare with iPhone 6/Plus. Then, this year, the iPhone 8 family, again with a new case design, but now waterproof, with dual cameras, etc. would debut this September. In 2017, perhaps Liquidmetal and AMOLED will be ready go for the iPhone 9. Etcetera. No more “S” years, Apple. Duh.
Had Apple done as we’ve just described, they’d have sold millions more iPhone units this year and millions upon millions more each year going forward.
Apple’s raison d’être is to delight customers. “S” model “tock” year iPhones do not delight customers in the same way as new “tick” year models. Obviously. They’re still the best smartphones on the planet, but they’re just okay. A bit of a meh. We all know that “S” models exist so Apple can wring out nice margins from existing designs and tooling, not expressly to delight customers. When Apple strays from its main goal is when things get wobbly. Just delight customers, Apple, and the world will beat a path to your door.
If we didn’t work for MacDailyNews, we’d have skipped the iPhone 6s Plus and held onto our iPhone 6 Plus units with no qualms – and we’re the most rabid Day One iPhone buyers you’ll ever find.
Why have an annual iPhone upgrade program, if you’re not going to wow us annually with new iPhones?