Report: Apple increasing iPhone 3G production

Foxconn, which actually makes the iPhone 3G, has been asked by Apple to boost production, according to a report.

(Credit: Apple)

Demand for Apple's iPhone 3G remains strong, which could be forcing Apple to ramp production beyond its original estimates.

TechCrunch is reporting that Apple has asked Foxconn, formally known as Hon Hai, to increase production of the iPhone 3G to 800,000 units a week. That pace translates to about 40 million units a year, far greater than what most analysts had been expecting the company to sell in the iPhone 3G era.

A short-term bump in production capacity may not imply that Foxconn will keep up that pace; TechCrunch's report alludes to "some concerns about quality control" on the part of either Apple or Foxconn related to the increase. After six weeks with no iPhone sales, there was clearly pent-up demand going into the July 11 launch of the iPhone 3G that may not be sustainable over the rest of the year without causing problems.

But more countries are expected to join the official ranks of iPhone users in the next several months, and the holiday shopping season is usually the catalyst for all sorts of gadgets. A production increase could offset that demand while making it easier to get an iPhone 3G without waiting two weeks for an AT&T direct-fulfillment order or playing iPhone roulette at an Apple store.

[sfarber1953]

I am really saddened to learn that Foxconn is making ANYTHING for Apple, much less the seriously interesting iPhone. Past experience has shown me that when Foxconn puts their own name on things they are usually JUNK. One can only hope that Apple has more control over what Foxconn is building for them so the Apple name isn't tarnished.

[John Elberling]

like duh, of course they are going to max production through november to supply enough iphones for the Xmas rush and upcoming global startups. so maybe they need 10-15 million in the next four months. but then they will cut back by the end of the year to a lower rate. it won't be 40 million a year. it will be interesting to see what it is come January.

[Badgersbits]

At least you have the option to wait 2 weeks for an AT&T order. Here in the UK we are lumbered with the totally hopeless 02, who have almost zero stock and do not allow online ordering. By the time they get their act together most sensible customers will have gone elsewhere.

[benjaminstraight]

Supply and demand, the basics of economics.

[sunbeam1]

here in the uk both o2 and carphonewarehouse ran out of stock. how pathetic is that?