Foxconn Continues to Experience Difficulties with iPhone 5 Manufacturing

Foxconn Still Unable to Produce Enough Apple iPhone 5 Smartphones

by Anton Shilov
11/07/2012 | 10:56 PM

Over three months after starting production of Apple iPhone 5 and after about two months of availability of the smartphone, Foxconn, the contract manufacturer that assembles iPhone 5 devices for Apple, still experiences difficulties that prevent the company from meeting demand for the popular product.


"It is not easy to make the iPhones. We are falling short of meeting the huge demand," said Terry Gou, the chairman of Foxconn, in an interview with reporters after a business forum, reports Reuters news-agency.

The demand for Apple iPhone 5 is very high and while Foxconn is the only company in the world that can produce such a complex device in tens of millions of units per quarter, it is not enough to fulfill demand, partly because of the fact that yields early in the lifecycle of any gadget are usually lower than desired. This is not the first time when Foxconn publicly or semi-publicly complains about yields of new Apple products early in the lifecycle.

After consumers discovered that the black version of Apple iPhone 5 can come with damages or scratches on the case, Foxconn and Apple imposed new quality-related requirements so that to ensure that the end-user gets smartphones without scrapes. After stricter quality requirements were imposed, Foxconn faced strikes at select facilities. Unfortunately, since there is a global issue with the black coating, consumers will easily damage their iPhones themselves.

Mr. Guo declined to comment on reports claiming that Foxconn Technology Group’s business unit, Foxconn International Holdings (FIH), which traditionally assembles non-Apple products, will also start to assemble Apple iPhone smartphones.

Foxconn currently assembles the iPhone 5 for Apple at its plants in Zhengzhou, central China, and in Guan Lan, in southern China.