Feeds

Analyst: There are LOADS of iPhone 5s, Apple is keeping them back

Treat the fanbois mean, keep 'em keen

Business security measures using SSL

Apple is not short on iPhone 5s but is likely to be holding them back artificially for commercial reasons, an analyst said today.

Walter Piecyk of Research Group BTIG said that the three to four week delay on online iPhone orders was a commercial wheeze rather than an indicator of throttling in the supply chain.

Piecyk was speaking after comments from Hon Hai chief Terry Gou last week, who maintained that his assembling factories were struggling to produce the new devices quickly enough to fulfill all of Apple's orders.

Piecyk offered little insight into the manufacturing process, but did say that he believes supply and demand for the flagship phone is "in balance" and improving.

The three to four week delivery delays on iPhone 5 orders from the online Apple Store, leading to queues for the device that apparently persist in US shops, are part of a cunning ploy to get fanbois to spend more money instore, the BTIG analyst said.

He maintains that Apple's option to order kit online and pick it up the next day instore proves that Apple is not short of the phones. Also, anyone ordering a phone through a carrier can get hold of one in a week, he said.

Piecyk argues that Apple wants to encourage customers to step into their retail stores, because if they do, they are much more likely to pick up an accessory or two - or even another iOS device.

It's just another example of commercial thinking from Cupertino, he writes:

[...] Long store lines and long ship times generate excitement in the press around new product launches [...] In addition, the ability to purchase an iPhone 5 or iPad Mini the night before on the website for a next day pick-up in the store has been a new and popular strategy.

Sprint’s CFO has noted that the reservation policy has increased the purchase of accessory sales in their stores. Some might suggest this is a focus on profits over customer friendliness, not unlike the criticisms over Apple’s choice to dump Google Maps. Whatever the reason, the ship times and reservation do not appear to be the only way to determine supply constraints and it appears that supply should not be an issue this quarter.

Piecyk adds that Apple is on track to hit sales forecasts of 47.5 million iPhone 5s sold this quarter as estimated by BTIG. The only numbers Apple has released so far are 5 million unit sales in the first weekend. ®

Bootnote

We would like to point out that our sources predicted this some time ago.

Secure remote control for conventional and virtual desktops

More from The Register

next story
Oi, Tim Cook. Apple Watch. I DARE you to tell me, IN PERSON, that it's secure
State attorney demands Apple CEO bows the knee to him
4K-ing excellent TV is on its way ... in its own sweet time, natch
For decades Hollywood actually binned its 4K files. Doh!
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
DARPA-backed jetpack prototype built to make soldiers run faster
4 Minute Mile project hatched to speed up tired troops
Hey, Mac fanbois. HGST wants you drooling over its HUGE desktop RACK
What vast digital media repository could possibly need 64 TERABYTES?
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Apple's ONE LESS THING: the iPod Classic disappears
RIP 2001 – 2014. MP3 player beloved of millions. Killed by cloud
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.