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Business

Surprise demand for larger iPhone leaves Apple scrambling

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Opening sequence

Business

Surprise demand for larger iPhone leaves Apple scrambling

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COMING UP:Surprise demand for larger iPhone leaves Apple scrambling

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Transcript

00:00:00
>>
APPLAUSE
>> Go big or go home. It's a phrase that could haunt Apple this holiday season as customers who searched for it's largest smart phone, the iPhone 7 Plus, may find it missing from shelves. The company admitting it was caught off guard by higher than expected consumer demand.
00:00:18
Reuters correspondent, Jeffrey Dastin.>> Analysts say that Apple may have been responding to having produced too many iPhone 6s' last year. It was in a situation where there were phones left on the shelves and likely did not want that to happen now. As it happens, though, the phone has this brand new camera in the larger model that consumers seemed to love.
00:00:41
It lets you zoom in more from further away, it lets you take better portrait shots, and because of that, people are lining up to buy the product.>> CEO Tim Cook adding he's not sure Apple can crank out enough of the phones in time for the holiday rush.
00:00:57
Cook also likely expecting some consumers would skip this year's upgrade in anticipation of next year's model. Which is timed to the iPhone's tenth anniversary and may therefore feature many more bells and whistles.>> And so Apple, along with the media, may have been thinking, wow, the iPhone 7 is not going to be the huge new thing, so, again, was conservative in its production.
00:01:20
>> It's a miscalculation that could end up being more than a black eye on Apple's image, but could also potentially hit holiday profits, as bigger smartphones have higher margins. Apple may have also misjudged how many customers it will win over from Samsung, which recently recalled its own large format phone, the Galaxy Note 7, after a number of them caught fire.