If iPhone 5 Fell Below Sales Targets Why The Big Shortage?

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Apple have said that while the iPhone 5 sales got off to a great start and the device sold faster than any other iPhone, sales have fallen short of what analysts predicted. Which leads us to the question of why are there shortages if it failed to reach expectations?

iPhone 5 falls below estimates sales targets but shortages still appear

WSJ reports that Hon Hai, the trade name of Foxconn Technology Group and where iPhones are assembled, may have the answer. Because the iPhone 5 is a complex handset due to its lightness and thinness, it takes a lot of time to build it. While productivity has been improving with every passing day, they had to address the problem that people were complaining about when it comes to scratches and scuffs on the iPhone 5. This has meant that new quality control checks have been put in place, to reduce the amount of damage. He did say that the new coating was the reason behind the scratching.

Apple may be unable to keep up with the demand for the iPhone 5 thanks to recent labour disputes too. These arose between employees in the Zhengzhou plant in China – involving those working on the production line and those making quality control checks. This issue was in relation to the metal casing, along with other quality issues, which he wouldn’t say any more about.

The site in Zhengzhou was only set up in 2011 and is still relatively new and workforce management is an issue. This happens to be the main place for the production of the iPhone 5. Hon Hai has increased the amount of staff so as to boost production for the device but at this time it looks like iPhone 5 shortages will carry on.

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