Wednesday, 10 October 2012

Apple iPhone 5 shortage creates concern

What appears to be an increasing shortage of the Apple iPhone 5 is spooking Apple investors according to a recent article in the New York Times, with this shortage expected to substantially affect landed prices of the new units in South Africa.

Said Christopher Riley, managing director of The Notebook Company, one of South Africa’s leading suppliers of notebooks and accessories: “We went through sustained shortages of the last two Apple iPads – which had a marked impact on prices locally – and now the iPhone 5 is facing the same obstacles.”
The iPhone 5 is causing quite a stir – perhaps more than was anticipated – and the big question is whether or not end users will pay the premiums they are now facing due to the stock shortages, or whether they will, rather, opt for other smart phones.
”If users vote with their feet, this will have a certain impact on Apple’s revenue from the iPhone 5,” said Riley.

Commenting further, he said that if the stock shortage does affect orders for Apple’s iPhone 5, it is likely that the company’s revenue stream will, however, be significantly augmented with sales of its mini iPad.

“Apple’s less expensive iPad – the mini iPad – is expected to be launched in the next few weeks. Some market watchers believe this unit will hit the tarmac running with sales more than making up for any drag on revenue caused by the stock shortage for the iPhone 5,” said Riley.
But, as they say, time will tell.

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