Tim Cook dinner ‘not sure’ Apple will meet iPhone 7 Plus demand by the tip of the yr
Apple is working to match the demand for the iPhone 7 Plus as finest as it might probably, nevertheless it won’t meet all of the demand by the tip of the yr, CEO Tim Cook dinner mentioned on the investor name discussing its fourth-quarter earnings.
“It’s hard to say,” Cook dinner mentioned in response to an investor query about whether or not the iPhone would hit provide/demand equilibrium by the tip of the subsequent quarter. “I believe that on iPhone 7 we will, on iPhone 7 Plus I’m not sure. I wouldn’t say yes at this point because the underlying demand looks extremely strong on both products but particularly on the iPhone 7 Plus vs our forecast going into the product launch.”
That is going to be a really huge deal for Apple, which is searching for its first return to gross sales progress within the first quarter this yr. The vacation quarter is vital for Apple, and along with that it has an enormous window of alternative provided that the Galaxy Notice 7 is principally useless within the water.
“It’s very hard to gauge demand when you’re selling everything you’re making, so we’ll find out more through the quarter but we’re confident enough to give you guys guidance that we’re returning to growth this quarter, which obviously feels very good for us,” Cook dinner mentioned.
Apple’s iPhone gross sales haven’t solely been slowing, however declining, year-over-year in a number of quarters this yr. That’s largely been attributed to an total saturation of the smartphone ecosystem, particularly since Apple largely targets a higher-end a part of the market. Apple can also be seeing loads of competitors from different producers attempting to beat it at a cheaper price level.
“We are supply constrained on 7 and 7 Plus, when you talk about other competitors it’s not particularly relevant to us right now because we are selling everything we can produce,” Apple CFO Luca Maestri mentioned. “When we look at all these things in its totality, we think for the total company, we believe revenue is gonna grow. We don’t get into specific product from a unit standpoint giving guidance. We feel very confident for the trajectory of iPhone going forward.”
Already, the iPhone 7 Plus is seeing huge delivery delays as a result of its demand has drastically outstripped its provide. In the event you attempt to go buy an iPhone 7 Plus, the delivery delay could also be as excessive as a number of weeks. Apple is frantically attempting to make as many iPhone 7 Plus telephones as it might probably, and it’s going to be vital that it finds a strategy to meet that demand.
The precise query from the analyst was, “in terms of supply, do you think we’ll be at equilibrium by the end of the quarter?”