Analyst: iPhone 5 demand not hit by 'Map-gate' concerns

Analyst: iPhone 5 demand not hit by 'Map-gate' concerns

Summary: Claims by some that Apple's new iOS 6 Maps app isn't as good as the old Google Maps app isn't putting a dent in iPhone 5 sales, claims an analyst.

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TOPICS: iPhone, Apple, iOS
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Claims that Apple's new iOS6 Maps app might not be up to scratch, which became volatile enough for chief executive Tim Cook issue an apology, is not putting a dent in demand for the new handset, claims Sterne Agee analyst Shaw Wu.

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"Despite well-publicized concerns with its new Maps app, we have not picked up changes in supply chain build plans," write Wu. "Demand appears robust with its online store quoting a lead time of 3--4 weeks".

Wu also praises Apple for how it has handled 'Map-gate,' claiming that the company took a "head-on" approach to the problem by referring those who have problems to use third-party maps. Apple's goal, according to Wu, "is to produce the best user experience possible and as a leading platform, third-party support is essential".

Wu also claims that display shortages, which may have been responsible for Apple 'only' selling 5 million units over the launch weekend, have eased off.

"We are seeing improving yields on in-cell touchscreens meaning it is becoming less of a constraint," Wu wrote in an analysts' note.

With the introduction of the iPhone 5, Apple switched to a new display technology called in-cell screen technology. This takes the display and the touch sensor and integrates it into a single unit. This technology makes the overall display thinner, but it also makes it a little more expensive to produce. It's also new technology, and this means that the displays are more difficult to make, with yields being lower than expected because of defects.

While the display is no longer limiting production, there are other issues that might be putting a kink in Apple's supply chain. Manufacturing the baseband that incorporates 4G LTE wireless capability into a 28-nanometer fabrication process so as to make it as power efficient as possible, along with aluminum and glass casing, could also be bottlenecks to rapid production of the new handset.

Topics: iPhone, Apple, iOS

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41 comments
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  • Too early to say

    If supply was already bottlenecked, you wouldn't be turning down the supply chain yet anyway.
    Nice headline for this Wu character but kind of stating the obvious.
    Little Old Man
    • now i understand my master steve jobs

      if i had the resources i will develop a a nuclear war against android and all brands od phones using it


      ahhhhh disgusting
      dkaparunakis@...
  • What's with this "Gate" suffix?

    Why make a reference to something over 40 years old?
    Dr Phil of Crap
    • lack of creativity

      or the desire to make a big thing out of something very small....

      android user maybe?
      dkaparunakis@...
  • Our expereince with Apple

    Look at what this new iPhone 5 under Tim Cook has brought, a bad decision about doing away with Google Maps. Now read the stories coming out now about how the new iOS 6 has a "Purple Haze" issue with it's camera and how it does not let some people connect to their wifi system and now stories coming out about how iPhone 4 and 4s owners are complaining about accelerated drain from the new iOS 6 as well. This is just bad hardware and software, that is all it is and not worth the money for inferior products just to be part of the club.

    My wife and I have bought 2 each of the 3GS about 6 months after they came out and we loved them, we then bought 2 each of the 4’s about 3 months after they came out, of our 4 iPhones we bought them all in Singapore over the Singapore Apple website and whenever I went to Singapore I would pick them up at our apartment. I did ask on both purchases if I could have it fixed in Jakarta (our main home) if we had problems with them. Both times Apple's Singapore staff told me yes they could fix them in Jakarta. It was not true.

    After only one month my wife’s iPhone 4 stopped working. I contacted Apple many many times and it took more than 6 weeks to finally have Apple to repair the phone free of charge even though it was under their so called warranty.

    When I made complaints to Apple Singapore about this and climbed up the complaint ladder in Singapore I was told by the last Apple Singapore staff that he was the last one I could complain to, no one else was higher in the Singapore office even though he was only in Customer complaint division. LOL. Again more Apple lies. I was given very bad information by the Apple employees for the repair for the phone and the arrogance I received exceeded anything I have been submitted to by any other company in this world.

    Have you ever tried to contact Apple via email? I then searched the net and emailed the only email address I could find, media@apple.com. Then I was contacted by Apple SE Asia and they refused to responsibility for their staff and the way I had been treated and then the staff got really arrogant and did not care that I was grossly misinformed, it was arrogance extraordinaire and I could not get her iPhone 4s fixed in Jakarta but had to make a trip back to Singapore to do it.

    No longer will we financially support Apple, they only want money now for untested inferior software and blah products like the iPhone 5 that is still playing catch up to the Samsung Galaxy S3. The home button is crap already on my wife’s Apple iPhone 4 so yesterday she got her new Samsung Galaxy S3, she loves it and easily transferred all data and contacts over from her Apple 4 with the Samsung software.

    If you want to really let Apple know how you feel about these injustices done by this arrogant company then contact these people:
    Jayesh Kamath jayesh.k@apple.com Janine Beach jbeach@apple.com Frank Teo frank_teo@apple.com media.help@apple.com Shelley Reid sreid1@asia.apple.com media@apple.com
    Dewi Thompson
    • I'll do the opposite ;-)

      "If you want to really let Apple know how you feel about these injustices done by this arrogant company then contact these people"

      Just because you have an axe to grind with Apple, doesn't mean that all other users of Apple products do too!

      In fact, everyone that I know personally that have used Apple products, including myself, have had nothing but great experiences with both Apple's products and service.

      If anything, I would contact those people at Apple to thank them!
      Harvey Lubin
      • Nice one Harvey

        This reminds me of the battle-cry of Apple fanbois who swear they will never buy Windows.

        Hundreds of millions of people chose to do the opposite.
        toddbottom3
    • Not the norm

      Although you have had a bad experience with Apple Support your case is not the usual. Apple has consistently rated above all others in support year after year. I personally have had numerous friends and associates get faulty products replaced even AFTER warranty and when it was their own fault. I can't recall one complaint concerning support amongst them. That said I'm not saying you're making this up but they do post their support numbers and email.
      observer1959
      • RE: Maybe he is not alone

        Maybe he is not a lone person having a problem or a very unusual case, maybe Apple Singapore is horrendous.
        edkollin
    • all what was said were a bunch of lies

      people paid by companies like samsung and other to give bad oppinion about our apple products.... products that we love and cherish and we are very happy to spend money on them.... any time and place...
      dkaparunakis@...
      • we love and cherish

        You might need to seek help for your problem, that's showing very strong feels for electronic gadgets of any brand. Maybe you need to de-tech for a while. Walk outside (without your phone or tablets) go bush walking, canoeing, cycling anything to get your priority's right.

        Martin
        martin_js
        • Where's the edit?

          Feel should read feelings.

          Martin
          martin_js
    • Not your experience at all "dewi"

      Bull,

      This is a copy and paste of a prepared statement, and can be found in the comments of another blog here: http://theeternaltruth.wordpress.com/2012/09/28/apple-apologizes-and-why-i-am-not-an-apple-fan/

      of course that is under a different name, you really think people fall for this crap

      You my friend are a paid shill.
      mjpwall@...
    • So...

      I've seen your comment on about half-a-dozen tech sites. How many more are you planning to post it to?
      Andre Richards
    • Proof the parent post is a spammer...

      Look at how many times you've made that comment on various sites. Get a life, dude.

      http://www.google.com/search?client=safari&rls=en&q=Look+at+what+this+new+iPhone+5+under+Tim+Cook+has+brought,+a+bad+decision+about+doing+away+with+Google+Maps&ie=UTF-8&oe=UTF-8
      Andre Richards
    • Parent post is spam. Check on Google...

      More sites where this guy has posted that same thing... ZDNet, editors: please zap this guy's post. He's spamming big time.

      http://www.google.com/search?client=safari&rls=en&q=Look+at+what+this+new+iPhone+5+under+Tim+Cook+has+brought,+a+bad+decision+about+doing+away+with+Google+Maps&ie=UTF-8&oe=UTF-8#hl=en&client=safari&rls=en&sclient=psy-ab&q=%22Look+at+what+this+new+iPhone+5+under+Tim+Cook+has+brought%2C+a+bad+decision+about+doing+away+with+Google+Maps%22&oq=%22Look+at+what+this+new+iPhone+5+under+Tim+Cook+has+brought%2C+a+bad+decision+about+doing+away+with+Google+Maps%22&gs_l=serp.3...428631.433220.0.434253.2.2.0.0.0.0.0.0..0.0.les%3B..0.2...1c.1.7posT0-UdEI&pbx=1&bav=on.2,or.r_gc.r_pw.r_qf.&fp=e9e476234b8c1f72&bpcl=35243188&biw=1173&bih=1061
      Andre Richards
  • Map issues are not the only thing wrong!!!

    This phone is a big disappointment. Screw IPhone sales! Fix the fuckin phone. I bought my wife her first IPhone the IPhone 5 because she wanted one. She fuckin hates it. If she touches it with body ( a skin connection ) she's looses her signal. WTF I have never been so close to dropping Apple all together. Signal problems, battery issues, Siri is better but not great the body is scratched to hell and map issues. Why don't we see articles on all these things? Seriously I think this phone looks slick but performance is a huge disappointment.
    nobrainer123
    • Sounds like a warranty issue

      If it has serious functionality problems like you say, then just return it. I have found Apple to be extremely reasonable about warranty issues. I had an older iMac that had a problem with the power supply and they just immediately swapped it with a brand new model (with more RAM) for free. They even copied the HD data over to the new machine for me. It was quick and painless. Another time I brought in my iPod with a faulty lock switch and they just handed me a brand new one without another question (just needed the receipt.)

      Why keep it if it has signal or battery problems. Bring it back.
      Tigertank
    • nobrainer123.. dissapear...!!

      cease to exist...!!
      dkaparunakis@...
  • New technology?

    Are you kidding? 16:9 IPS displays exist as large as 46" displays! What kind of reporting is this?

    As for Map gate, maybe it is the Purple Fringing in the camera, the wifi issues, the easily scratched back surface, lack of YouTube, apple lock-in, or maybe most just realize android is the better platform!

    Of course the fact that the Lumia 920 is coming has to suck for Apple. That Camera makes the iPhone camera look bad and it is very feature rich. I predict the Lumia 920 seriously erodes the iPhone sales.
    slickjim