During Apple’s fiscal fourth quarter earnings call this evening, Tim Cook touched on the supply and production issues that have plagued the iPhone X thus far. Cook explained that things are improving dramatically, but it’s hard to look too far into the future.
Morgan Stanley analyst Kate Huberty asked Tim Cook and CFO Luca Maestri when Apple expects to catch up with iPhone X demand. Cook responded by explaining that the ramp for iPhone X production is going well, with week-by-week improvements in outputs.
The Apple CEO, however, says it’s impossible to predict when the supply and demand balance will equal out:
The ramp for iPhone X is going well, especially considering it being the most advanced iPhone created. Really happy we’re able to increase week-by-week outputs. Going to get as many of them as possible to customers as soon possible. I can’t predict when that balance will happen.
Cook was then asked for more background on iPhone X pre-orders, including a breakdown on the mix between different models and channels. He wouldn’t comment on the breakdown, but did say that iPhone X pre-orders are “very good.”
We never go through mix, but I would share with you that iPhone X orders are very strong for both direct customers and carriers channels throughout the world. We couldn’t be more excited to get underway. I think, as of a few minutes ago, the first sale happened in Australia.
Finally, Cook was asked to touch on Apple’s new iPhone lineup – which ranges in price from $349 to $1149. Specifically, Cook was asked to explain how Apple expects the wide price range to affect ASP and sales during the holiday quarter:
We had good success through the different iPhones. We’ve tried hard to have an iPhone that is as affordable as possible for people who really want an iPhone and may have a more limited budget. And we’ve got three new iPhones and people will look at these and decide which they want.
This is the first time we’ve ever had three new iPhones at the top of the line and first time with a staggered launch. We’re going to see what happens, but we’ve put our best thinking into what could happen.
He also commented about the iPhone X cost for consumers, how many pay monthly and compared it to the cost of grabbing a cup of joe.
An iPhone X costs less than one coffee per day at one of those nice coffee places.
Keep up with all of the details from Apple’s live call right here.
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