Yet Another iPhone 5 Bottleneck for Apple

In case you hadn't heard by now, the iPhone 5 is hard to come by right now. Apple (Nasdaq: AAPL  ) simply can't make enough of them to satiate massive demand for the device. New orders placed on its web site are currently being quoted shipping times of three to four weeks, and heading down to a local retail store is hit or miss. It looks like those in-cell touch display panels aren't the only potential bottleneck hindering the iPhone 5.

According to a recent Bloomberg report, Apple's choice to utilize aluminum for the primary unibody chassis is another culprit contributing to the shortages. Using the same type of aluminum that's used in its laptops is one key facilitator to the iPhone 5 being so thin and light. The material is lighter than stainless steel, used for the antenna in the iPhone 4 and iPhone 4S, but is softer so it scratches more easily.

Source: Apple.

Throughout the production process, there are a slew of steps that could result in damage and scratches to the chassis, meaning they won't meet the heightened quality standards that Apple is enforcing in light of user complaints that they're receiving pre-damaged iPhone 5 units. Despite marketing chief Phil Schiller downplaying the issue in an email response to a customer, Apple's now putting pressure on contract manufacturer Foxconn and raising quality standards.

Jacob Huang, a professor of materials engineering, told Bloomberg that a hardware maker could even use magnesium, which is lighter than aluminum, but also softer and even easier to scratch. Microsoft (Nasdaq: MSFT  ) should be paying attention there, since its new Surface tablet is built out of magnesium. Not only is the software giant reportedly facing low production yields related to the material, but it could also end up on the receiving end of user complaints related to scratching.

If there's one thing Apple doesn't need right now, it's more possible iPhone 5 bottlenecks. But considering the relatively short-term nature of the shortages, it's still a buy in my book.

Shortages aside, the introduction of the iPhone 5 is an event Apple investors have been looking forward to for months. The stakes are high and the opportunity is huge, so to help investors understand this epic Apple event, we've just released an exclusive update dedicated to the iPhone 5 launch. By picking up a copy of our premium research report on Apple, you'll learn everything you need to know about the launch, and receive ongoing guidance as key news hits. Claim your copy today by clicking here now.

Evan Niu, CFA, owns shares of Apple. The Motley Fool owns shares of Apple and Microsoft. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (1) | Recommend This Article (8)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

DocumentId: 2052169, ~/Articles/ArticleHandler.aspx, 4/18/2014 11:13:10 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement