Suppliers rally on strong iPhone X demand

Bloomberg

Apple Inc.’s biggest suppliers from Taiwan Semiconductor Manufacturing Co. to Hon Hai Precision Industry Co. climbed on Monday after delivery times for the iPhone X stretched to as much as six weeks in the US, underscoring demand for the marquee smartphone.
Shares in Hon Hai, the main assembler of Apple devices, climbed as much as 3.6 percent in Taipei. TSMC, the US company’s biggest chip supplier, rose as much as 2.5 percent to a record. Other suppliers from AAC Technologies Holdings Inc. in Hong Kong to Lens Technology Co. in mainland China also advanced, tracking Apple’s own gains.
Apple, which says demand for its signature gadget is “ off the charts,” began taking orders for the iPhone X a week ahead of the launch and—within minutes—shipping times lengthened to as much as six weeks in the US.
That suggested tight supply over the crucial holiday season, when retailers make the majority of their revenue. The US company was also said to have struggled to make enough of its costliest device, in part because of quality issues with the sensors that make Face ID possible.
The pre-orders situation is “easing concerns that demand for the iPhone X might not meet expectations,” Bloomberg Intelligence said in a report. “Telecom carrier reports of relatively weak demand for the iPhone 8 stoked these fears.”
Around the world, Apple fans posted images and comments online about how they were planning to get their hands on one of the $999 (or more) phones. In Hong Kong, the phone appeared to sell out less than half an hour after ordering began with the online store there showing the phone “currently unavailable.” It was a similar story across Asia.
In the UK, the device sold out within minutes. And if New Yorkers didn’t stay up all night, they were likely out of luck. By early morning on the East Coast, Apple’s website was already registering a wait of as much as six weeks.
Waiting several weeks for major new Apple devices has become common. Shipping times for the iPhone 6 and iPhone 6 Plus, launched in 2014 and the previous end-to-end iPhone overhaul, extended to as much as four weeks in the hours after becoming available to pre-order.
Apple Inc typically takes a few
weeks or months to reach a balance of supply and demand for major new iPhone launches.