Apple’s iPhone 6S and iPhone 6S Plus are set to launch on the 25th of September. However, according to a recent report, the iPhone 6S Plus may be in short supply at launch. This news comes from KGI Securities analyst Ming-Chi Kuo, who recently issued a note to investors indicating that the device is facing supply shortages due to backlight supply modules from one of Apple’s suppliers.
We believe Minebea’s (JP) backlight module production issues in supplying iPhone 6S Plus (6S Plus) is one of the main factors in the model’s supply shortage. To tackle this issue, we believe Apple (US) has been increasingly transferring high-ASP 6S Plus backlight module orders to Radiant (6176 TT, NT$106.5, OP), boosting its sales momentum.
Supply Chain Challenges
The supply chain issues highlighted by Kuo are not uncommon in the tech industry, especially when dealing with high-demand products like the iPhone. The backlight module is a critical component of the iPhone’s display, and any disruption in its supply can significantly impact the production and availability of the device. Minebea, a Japanese company, has been identified as the primary supplier facing production issues. To mitigate this, Apple has been shifting more orders to Radiant, another supplier, to ensure that they can meet the demand.
This isn’t the first time Apple has faced supply chain challenges. In the past, the company has had to deal with shortages of various components, from processors to screens. These issues often lead to delays in shipping and can affect the overall sales performance of new products. However, Apple has a history of quickly adapting to these challenges by diversifying its supplier base and investing in new technologies to streamline production.
High Demand and Market Impact
Apple is currently showing shipping times of three to four weeks for new orders of the iPhone 6S Plus. This extended shipping time could be attributed to the rumored supply chain issues, but it could also be a sign of high demand for the handset. The iPhone 6S Plus, with its larger screen and enhanced features, has generated significant interest among consumers, leading to a surge in pre-orders.
High demand for new iPhone models is not unusual. Each year, Apple enthusiasts eagerly await the latest releases, often leading to long lines at Apple stores and rapid sell-outs online. The iPhone 6S Plus is expected to continue this trend, especially given its advanced features like 3D Touch, improved camera capabilities, and faster processor.
The potential shortage of the iPhone 6S Plus could have several implications. For one, it might drive up the resale value of the device on secondary markets like eBay and Craigslist. Additionally, it could impact Apple’s quarterly earnings if the company is unable to meet the initial demand. However, Apple has a robust strategy for managing such situations, including ramping up production and leveraging its extensive supply chain network.
In conclusion, while the iPhone 6S Plus may face initial supply shortages due to backlight module production issues, Apple is taking steps to address the problem by reallocating orders to other suppliers. The high demand for the device is a testament to its popularity and the anticipation surrounding its launch. As always, Apple is likely to navigate these challenges effectively, ensuring that consumers can get their hands on the latest iPhone as soon as possible.
Source MacRumors
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