Apple's COO to meet with Foxconn to discuss iPhone X production delays

The Apple iPhone X has been suffering from production delays

The Apple iPhone X has been suffering from production delays

In the midst of rumored production problems involving the Apple iPhone X, Apple's Chief Operating Officer Jeff Williams plans to meet with the chairman of contract manufacturer Foxconn later this month in Taiwan. While Apple uses a number of different companies to assemble the iPhone and iPad, the iPhone X is being put together exclusively by Foxconn. The latter's chairman, Terry Gou, will discuss with Williams the production delays that could limit the number of iPhone X units available to consumers by launch day, November 3rd.

As we told you earlier today, reliable Apple analyst Ming-Chi Kuo estimates that only 2 million to 3 million iPhone X units will have been shipped by Apple by the device's November 3rd launch day. Apple's COO will be in Taiwan to help celebrate the 30th birthday of TSMC on October 23rd. The chip producer is supplying Apple with the A11 Bioniuc chips for the 2017 iPhone models.

Foxconn subsidiary Sharp, along with LG's Innotek unit, is responsible for production of the 3D-sensor used with the TrueDepth Camera. The sensor helps the Face ID face recognition feature work.  While problems with the production of this part negatively affect the number of iPhone X units that roll off the assembly line, Sharp says that yields have picked up. Still, an anonymous tech executive familiar with the situation says that the yield rate is still not high enough to allow the iPhone X to roll off the assembly line at full capacity.

Yuanta Investment Consulting analyst Jeff Pu expects Apple to produce 32 million units of the iPhone 8 and iPhone 8 Plus during the current fourth calendar quarter of 2017. He believes that Apple is hoping to manufacture 35 million iPhone X handsets. For the first calendar quarter of 2018, Pu sees Apple slashing production of the iPhone 8 and iPhone 8 Plus by 50% to 16 million units. He sees 39 million iPhone X handsets manufactured for the three months that run through the end of March.

source: NikkeiAsianReview

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34 Comments

1. Zack_2014

Posts: 677; Member since: Mar 25, 2014

Basically the iPhone 8 is a fail if they have to cut down production by 50% which is massive.

21. cnour

Posts: 2305; Member since: Sep 11, 2014

So what? iPhone X will destroy the market as we all know.

23. Sammy_DEVIL737

Posts: 1504; Member since: Nov 28, 2016

Now you are talking same like"Bankz".

2. verbalize

Posts: 150; Member since: May 03, 2013

Then the Samsung Galexy 8 and the Note 8 are huge epic fails.. just going by numbers here..

26. sgodsell

Posts: 6738; Member since: Mar 16, 2013

If the S8 and note 8 are fails, then why did Apple copy it's wireless charging, and is going for the bezel less design using Samsung's AMOLED displays? For years Apple zealots were saying that Samsung and other smartphones were cheap, because they didn't use metal. Yet Apple put a glass back on their smartphones for 2017. Why? Because of wireless charging. The only one that failed here was Apple thinking that they could go 4 years with the same design and low resolution displays. Plus the people that think Apple has made major steps in innovation.

30. T12RYK

Posts: 849; Member since: Jun 10, 2011

Its a fail because of the Samsung branding on a phone. They do make great screen and they have an excellent design. But the software is still bloated and even with the latest processor there is still plenty of lag and stutter out of the box (I don't even want to think about how bad it gets when apps are installed. Samsung wasn't the first to have wireless charging on a phone not did they invent it so Apple hasn't "copied" them (such a childish term to use!) Apple also had a glass back with previous iPhone models when Samsung was still using plastic, so who "copied" whom here?? Apple reinvented the mobile market so any innovation moving forward wouldn't have even happened if it wasn't for Apple (You're welcome!) :-)

3. Scott93274

Posts: 6025; Member since: Aug 06, 2013

Well, someone's job is on the chopping block. iPhone sales are down because you have people holding out for the X, but they can't meet production quotes... Apple stands to lose a lot of sales if this isn't resolved ASAP.

5. Back_from_beyond

Posts: 1161; Member since: Sep 04, 2015

Yeah, but who to blame? The manufacturers of various components that suffer from low yields? Whoever came up with the retarded idea to use the tech? The person that designed it so crappy?

6. kiko007

Posts: 7469; Member since: Feb 17, 2016

"Whoever came up with the retarded idea to use the tech? The person that designed it so crappy?" That's literally the most simpleminded ideology I've ever heard. They gave you a working idea and prototype to use as a basis for manufacturing, by which the manufacturer agreed they could accomplish. What you're suggesting is that if I gave you the recipe to a meal, showed you exactly how to make it properly, to which you told me you could handle, and still f**ked up... it would be my fault. That's madness and I refuse to accept or placate such patented stupidity as an excuse for incompetence. Somebody's losing their job for s**t like that.

12. Back_from_beyond

Posts: 1161; Member since: Sep 04, 2015

Even how you like to spin it, it still leaves two responsible parties. Either the party that has to make it is inadequately suited for the task or the party that instructed them has failed to do so adequately. The problem is that in particular the Face ID module has a lot of different suppliers. It's a collection of components from various manufacturers that still have to be assembled into a working unit. This is a matter of trial and error, polishing and smoothing out the process, refining the design if needed and a sign that Apple simply left the start of production much too late. You can blame manufacturers of components for initial low yields. You can't blame manufacturers of individual components that the whole of what their components are used for is problematic, which is what the article is suggesting. It could simply be that the design simply isn't sound or practical for mass production. My point was that you can't just point a finger and blame one guy for what several departments are ultimately responsible for. The person who might inevitably lose his job over this, probably had very little to do with the actual problems.

7. Scott93274

Posts: 6025; Member since: Aug 06, 2013

kiko007 is actually spot on, It may be a poor and/or convoluted design for a phone (speaking strictly from a manufacturing standpoint) but Apple and the folks over at Foxconn sign a contract where manufacturing costs and production quantities are discussed and agreed upon prior to mass production of their product. If there is a problem where the yields are not meeting the demands outlined in their contract, then it is 100% the manufacturer's fault for accepting the terms that they were incapable of meeting. The negotiation product quantities is something that could have been done (should have been done) prior to the start of mass production. If they couldn't agree on an ammount, then Foxconn wouldn't have won the contract and someone else would be building your iPhone X.

9. uncle_gadget

Posts: 1050; Member since: Sep 20, 2017

How did this become Foxconn problem? The issue was acquiring the camera array component. You can't make phones if you can get the parts for them. So maybe this guy is talking to Foxconn to get an idea how long its taking to get parts and once received how many phone they can make, so Apple knows what to expect. But I don't see where Foxconn is at fault here?!

11. trojan_horse

Posts: 5868; Member since: May 06, 2016

Exactly. The issue is the components which are not arriving in time due to low yields... If the parts needed to assemble the iPhone X does not arrive to Foxconn in time, then why Blain Foxconn for it?

13. PhoneCritic

Posts: 1337; Member since: Oct 05, 2011

I hate to say it but this sounds so familiar when we talk of "contracts". Not trying to incite a flame war here but if this is the case cant we use this same logic with Apple telling other vendors who, apart from Apple, have "contracts" with QC to stop paying when the discussed and agreed upon prior to signing. Just saying

15. kiko007

Posts: 7469; Member since: Feb 17, 2016

Not even remotely the same type of agreement...

31. T12RYK

Posts: 849; Member since: Jun 10, 2011

They have these production rumour EVERY year! I'll believe it when the iPhone X is released and see what happens.

33. Scott93274

Posts: 6025; Member since: Aug 06, 2013

I know they had rumors about the yields of sapphire glass displays not being high enough to actually be able to support the demand so they axed the feature. That turned out to be 100% true despite everyone's refusal to accept it... but then again, I can respect you for holding out judgment for the actual release of the device, that's pretty smart of you. I would just suggest that you prepare for the possibility that reports might actually be true. But we shall find out soon enough. Fingers are crossed you can get your iPhone X without too much hassle.

34. T12RYK

Posts: 849; Member since: Jun 10, 2011

I won't actually be opting for the iPhone X. I'll be sticking with my iPhone 7 for another year.

35. Scott93274

Posts: 6025; Member since: Aug 06, 2013

Good choice, it's still a good phone, no need to upgrade just yet.

4. Cat97

Posts: 1728; Member since: Mar 02, 2017

Well...at least they tried.

8. TheRetroReplay

Posts: 256; Member since: Mar 20, 2012

They probably should have skipped they iPhone 8 and just went with the iPhone X instead, then they wouldn't have to worry about production delays

10. uncle_gadget

Posts: 1050; Member since: Sep 20, 2017

Why not? The production delays of the X was due to parts not being readily available. PA has posted it several times already.https://9to5mac.com/2017/10/12/iphone-x-production-problems/ Estimate 400,000 per week being made. Which mean Foxy can't do anything but wait until they come.

14. lbblock

Posts: 34; Member since: Apr 20, 2015

Sharp always has yield issues. In the past it was the IGZO panel for one of the retina iPads. The funny thing is Samsung always comes to Apple's rescue when another partner can't deliver.

16. L0n3n1nja

Posts: 1511; Member since: Jul 12, 2016

Maybe Apple should just hire Samsung to manufacture the entire iPhone for them lol.

22. cnour

Posts: 2305; Member since: Sep 11, 2014

and then iPhone X will explode.

24. Sammy_DEVIL737

Posts: 1504; Member since: Nov 28, 2016

& in the other case it will "bend" or have "poor network reception".

29. tedkord

Posts: 17094; Member since: Jun 17, 2009

Or, it'll be the best rated phone on the planet, like all the other Samsung flagship phones have been since the Note 4. (Coincidentally, they're also the phones which draw the most tears from you).

17. Phullofphil

Posts: 1740; Member since: Feb 10, 2009

It’s just reality of trying to put the best of the best into tech every year. Then trying to build millions of them

18. htcisthebest

Posts: 433; Member since: Nov 15, 2011

I would only buy an iPhone if I can run Android on it.

32. T12RYK

Posts: 849; Member since: Jun 10, 2011

Why tho? This has to be stupidity on the highest level!!

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