Wednesday, October 05, 2011

iPhone 5 Production Issues?

I love Apple products, almost to the point of being a dreaded fanboy, but I have to admit that yesterday was Apple's worst performance on a new iPhone announcement.  Is Apple's best days behinds them, now that Steve Jobs is gone, or is something else going on behind the scenes.  Here is my take.

The iPhone4 update to iPhone4s is about the same as the the update from iPhone3G to iPhone3Gs.  It is very minor, and should not have taken more than a year to release.  Going from an A4 to A5 chip probably does not even require a different circuit board.  Going from GSM to GSM/CDMA, is also simply a chip change, and a minor circuit board change.  The only other change was a camera upgrade which is also pretty minor.  If you are assuming this is all they have in the works for the iPhone, I think you are wrong.  My guess is that they wanted to also anounce the iPhone5 which will have a larger screen and 4G compatability, but they are having issues building the iPhone5.  This makes sense given the leaks about manufacturing issues, and the Sprint 20 billion dollar commitment to buy iPhones over 4 years.  So rather than announce a phone, that they could not deliver in quantity, they simply did not announce it.  They were planning to announce it, but once that was removed, the whole iPhone announcement fell flat.  My guess is that they will get the manufacturing issues resolved, and announce an iPhone5 exclusively for Sprint WiMAX 4G in the near future.  AT&T and Verizon will get a LTE version next year, possible as late as June as they are buiding out the LTE networks as we speak.  Apple probably does not want to release a 4G phone on the majors, which will be a battery hog, until there is enough network coverage to support it.  That's the story that is missing in the media.

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