iPhone's Summer Production Glitches Create Holiday Jitters (wsj.com) 48
Yoko Kubota, Tripp Mickle, and Takashi Mochizuki, reporting for WSJ: Apple's new iPhone, which is expected to be unveiled Tuesday, was plagued by production glitches early in the manufacturing process this summer, according to people familiar with the situation, which could result in extended supply shortfalls and shipping delays when customers start ordering the device later this month (alternative source). New iPhones are typically in short supply when first released. But if shortfalls of the new phone extend beyond the initial sales period, which is expected to begin September 22, they could weaken analysts' and investors' projections for sales in the crucial holiday period. The production glitches led to a setback of about a month in the manufacturing timetable. Foxconn, the Apple contractor that assembles iPhones, has been ramping up production at its manufacturing complex in Zhengzhou, China. The company is paying bonuses to employees who can help bring new hires on board at its Zhengzhou plant, which Foxconn said in June employs about 250,000 people.
