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KGI’s Kuo: Improved iPhone X Availability Due to Improved Production Numbers, Not Lack of Demand

KGI’s Kuo: Improved iPhone X Availability Due to Improved Production Numbers, Not Lack of Demand

iPhone X supplies have improved, causing shipping estimates to drop to 1 to 2 weeks. While some have speculated this is due to weak demand for Apple’s flagship device, KGI Securities analyst Ming-Chi Kuo says instead it is attributable to better-than-expected improvements in production.

KGI's Kuo: Improved iPhone X Availability Due to Improved Production Numbers, Not Lack of Demand

MacRumors:

According to Kuo, who frequently shares accurate information from Apple’s supply chain, iPhone X production issues “have been well addressed” in recent weeks, with Foxconn’s production now at 450,000-550,000 units per day compared to just 50,000-150,000 a month or two ago as Apple geared up to launch the device. 

Kuo says production issues of two of the primary component bottlenecks, the LTE antenna and the dot projector module of the TrueDepth camera, have improved.

(1) Hon Hai’s daily shipments of iPhone X have climbed to 450-550k units, up from 50-150k units 1-2 months ago; (2) shipments of Career’s LCP LTE antenna will likely grow 100% MoM in both November and December; and (3) production yield of Dot projection module, made by LG Innotek (KR) and Sharp (JP), has moved quickly above 80-90% or higher from below 60% 1-2 months ago.

Kuo believes the improved production will result in iPhone X shipments being 10 to 20 percent higher than he previously had expected. Some orders, previously estimated as shipping in 2018, likely being shipped before the end of the year.

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