Quote:
Originally Posted by fjtorres
Apparently what is going on is that Apple, like most companies, pre-orders more components than they expect to need to keep spares on hand in case of a surge in demand and to replace the components that fail QA before assembly. When they got less defectives, the on-hand supply ballooned so they cut back on orders to draw down the excess. So apparently, yes, demand has been somewhat less than the maximum they prepared for. That, however, is a bit different from saying the iPhone sales are less than expected. Or that sales are declining.
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So, are you saying that Apple routinely orders 30-60% more component parts than they really need to account for defects? And that all of a sudden last quarter they suddenly experienced roughly 5-8 million fewer defective screens than anticipated so they canceled the following quarter's overages by that amount?
Isn't such a defect rate a tad high?
--Pat