iPhone 5 Supply Worries Are Not Over

Actual shipments of iPhone 5 are still far below Apple’s (NASDAQ:AAPL) requests, according to Hon Hai Precision Industry chairman Terry Gou, who said his manufacturing company still couldn’t meet the quality standards of its customer. “We still can’t meet Apple’s quality standards (on the iPhone 5),” Gou told reporters on Wednesday, according to The Wall Street Journal. “Market demand is very strong, but we just can’t really fulfill Apple’s requests.”

Gou said production of the new smartphone was difficult because of its design, though he declined to say which aspects had caused the issues and how long it would take to solve them. He also refused to comment if Hon Hai had plans to outsource the iPhone orders to other manufacturers. The chairman added that he was in China a few days ago to give moral support to workers.

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Hon Hai has factories across China that assemble several Apple products as well as electronics for companies such as Hewlett-Packard (NYSE:HPQ), Sony (NYSE:SNE), and Amazon (NASDAQ:AMZN).

Supply concerns have plagued Apple’s latest smartphone since it first went to sale in September, with the company admitting as much. Analysts have expressed worries about Apple being able to meet the high demand and trimmed their shipment numbers in the last quarter.

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