What? How is that even possible? It’s all about parts. Apple doesn’t manufacture many of the parts it uses in today’s iPhones, iPads, Macs, Watch, Apple TV, or even the Beats headphones or AirPods. Apple designs the product, often designs the components, but someone else puts the parts together.
Invisible iPhone X
It’s been nearly a year since Apple introduced AirPods to the world and, typical Apple, it took about 10 months to get supply to meet demand. We see this with nearly every new product introduction. Supply does not meet demand.
With iPhone X, the supply and demand problem will be Apple’s natural disaster.
Today, the iPhone lineup is the longest and largest it has ever been. Remember the first iPhone? Two models. One with 8GB storage and one with 16GB storage. Compare that to this. iPhone X, iPhone 8 Plus, iPhone 8. Each with two storage options and multiple color options. iPhone 7 and iPhone 7 Plus. Again, more storage options and different colors. iPhone 6s and iPhone 6s Plus. More colors and storage. iPhone SE. Two storage options, four color options (not to mention the multiple carrier requirements).
What’s the problem? Choice is good, right? Since Apple sells a couple of hundred million iPhones a year and takes home much of the industry’s profits, what’s not to like?
In a word– availability. At the moment, every iPhone model can be purchased within one to three days, the exception being iPhone 8 models, which, depending upon configuration, are available within a week or so, depending upon carrier, color, and storage size.
Why? What’s wrong? Why does Apple have a good supply of iPhones?
The reason should be obvious. iPhone X.
Everywhere I talk to an iPhone user I ask the same question. Are you going to get a new iPhone? And, Which one? The answer is always the same. iPhone X. What seems to be happening is obvious. A large number of iPhone customers who would be upgrading to the latest and greatest this time of year, are waiting for the most latest and greatest in iPhone X, and that portends a disaster in the making, albeit a natural disaster for Apple as it’s always had trouble matching supply with demand for new products.
iPhone X could be– this is my prediction– Apple’s biggest supply-meet-demand disaster ever, and we will know for sure in just a few weeks when pre-orders begin October 27 and deliveries begin November 3.
How can we tell?
By how long and far the iPhone X shipping date slips. Assume you order on the day of October 27 but shipping the drops into December or January or beyond within a few days, then Apple has a disaster on its hands. Neither iPhone 8 and iPhone 8 Plus sales, nor sales of lesser and older models, will not boost revenue next quarter the way a good supply of iPhone X will.
Apple was bullish on revenue for the current quarter and results are due just days after iPhone X orders begin, both of which could impact Apple’s stock. Watch the shipping dates for iPhone X and you’ll see where Apple’s disaster is on the horizon.