Apple ramps up supply chain for iPhone 5 release
New Apple CEO Tim Cook will be hoping his prized supply chain is up to the task with the October launch of the iPhone 5 and the holiday season rapidly approaching.
So far, Apple’s supply chain seems up to the task, as suppliers are ramping up production to meet the October deadline. Supply Chain sources told DigiTimes that Foxconn is producting 150,000 next-generation iPhones each day, and is hoping to ship six million units in September alone.
Foxconn will have to raise its daily production to meet that lofty target, however, as producing 150,000 phones each day would only get the Taiwanese tech company 75 percent to its six million unit goal.
That could push fourth-quarter iPhone shipments to as high as 22 million, AllThingsD.com reported.
SEE OTHER TOP APPLE STORIES IN THE SUPPLY CHAIN DIGITAL CONTENT NETWORK
That supply would meet the predicted demand, as BTIG analyst Walter Piecyk is predicting that Apple will sell 21.5 million iPhones in the fourth quarter. That number could rise thanks to a growing international sales audience.
“Since the iPhone 4 has been launched, we estimate that AT&T and Verizon have represented 30 percent of Apple’s unit volume,” Piecyk told AllThingsD.com. “If the U.S. continues to represent 30 percent of Apple’s iPhone sales, it would imply a globally iPhone demand for as many as 30 million iPhones in calendar Q4.”
Something that could add to Apple’s rising iPhone demand is the addition of Sprint as a third carrier within the U.S.
The demand will certainly be there for Apple’s newest iPhone, but will the supply be ready? We’ll know in a month.
XPO Logistics Completes Spin Off of GXO Logistics
XPO Logistics has completed its spin-off of GXO Logistics, creating two independent public companies.
GXO Logistics today marked the occasion by ringing the opening bell on the New York Stock Exchange. GXO leadership and board members were in Manhattan to mark the “exciting milestone in GXO’s history”, opening Wall Street and celebrating the business’s first day of regular way trading.
“We consider it a privilege to launch GXO as a new company at the top of the industry — the world’s largest pure-play logistics provider,” said chief executive Malcolm Wilson, in a statement. “We have a powerful platform for future growth, including our culture of innovation, strong customer relationships, seasoned leaders and a world-class team. This is day one of unlocking vast new potential for our company.”
GXO Logistics in Brief
- CEO: Malcolm Wilson (formerly CEO, XPO Logistics Europe)
- Employees: 94,000 approx.
- Warehouse capacity: 208m sq.ft
- Key customers: Apple, Nike, Whirlpool, Nestlé
XPO’s Pure-Play Strategy
XPO Logistics announced plans to spin off its logistics division in December 2020, with the intention of creating two pure-play entities focussed on contract logistics (GXO) and freight transportation (XPO).
In an interview last month, GXO Chief Investment Officer Mark Manduca said there is “massive scope” for growth both organically and through M&A activity. "A deep pool of potential new business exists for GXO, both through share gain and penetration,” he added, explaining that companies are increasingly looking to outsource logistics as supply chains become ever complicated.
GXO is a leader in logistics automation and robotics, leveraging AI and machine learning to ‘turn logistics into a competitive advantage’ for its customers. It has approximately 94,000 employees, and counts Apple, Nike and Whirlpool among its blue chip customers. The company says it will also look to strengthen its presence in other high-growth areas, primarily ecommerce, apparel, technology, food and beverage, and consumer electronics. The company has 208m+ sq.ft of warehouse space across 869 locations in 27 countries.