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Foxconn struggling to meet demand for new iPhones

By Kenny Yeo - on 18 Sep 2014, 10:22am

Foxconn struggling to meet demand for new iPhones

We know that the new iPhone 6 models are off to a good start. Pre-orders for Apple's latest smartphones hit 4 million in just 24 hours, which is a new record for Apple. Local telcos are also reporting that stocks have either completely dried up or are extremely limited.

To combat such high demand, the iPhone's main manufacturer, Foxconn, has stepped up and hired more workers. Its production facility in Zhengzhou is the largest and reports are saying that there are over 200,000 workers working there right now dedicated to manufacturing iPhones.

Foxconn is reportedly running over 100 production lines at its Zhengzhou facility round the clock and is current producing around 140,000 iPhone 6 Plus and 400,000 iPhone 6 phones everyday. It goes without saying then that one can expect supply of the iPhone 6 Plus to be scarcer.

The reason for this is the iPhone 6 Plus' larger 5.5-inch display. According to a person familiar with the matter, the yield of these displays is just around 50% to 60%, which means almost one out of every two displays do not make the cut and has to be scrapped. The yield for the iPhone 6's smaller display is much healthier at roughly 85%.

Source: Wall Street Journal

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