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Business

Surprise demand for larger iPhone leaves Apple scrambling

Opening Sequence

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 search for its largest smartphone, 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
Rueters correspondent Jeffrey>> Analyst say that Apple may have been responding to having produced to many iPhone 6s's last year, it was on a situation where there were phones left in 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 seem 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 10th 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.
00:01:18
So, again, was conservative in it's production.>> 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