Foxconn outfoxed by technical difficulties of building iPhone 5

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Foxconn outfoxed by technical difficulties of building iPhone 5

Taiwan’s Foxconn has admitted that it cannot meet strong demand for Apple’s new iPhone 5 due to difficulties in building the gadget, amid concerns over the U.S. giant’s future earnings.

“We can’t really fulfill Apple’s requests. Our shipments are insufficient .?.?. given the huge market demand,” Foxconn Chairman Terry Gou told reporters late Wednesday.

He added that the design of the iPhone 5, of which five million units were sold during its launch weekend in September, has made production difficult.

He declined to say whether Foxconn plans to outsource some of its iPhone orders to other manufacturers.

The iPhone has been a huge driver of Apple’s phenomenal profits, along with the iPad, both of which are made by Foxconn, as are other products by firms such as Nokia, Intel and Sony.

Peter Oppenheimer, Apple’s chief financial officer, said on Oct. 25 that demand for the iPhone 5 continued to outstrip supply, but it was working hard to catch up.

Supply shortages have hurt Apple’s shares in recent weeks owing to concerns it may not be able to meet demand in the near future, which would in turn hit earnings.

Last month, Apple said net profit in the July-September quarter climbed to $8.2 billion thanks to a 58 percent jump in sales of its phones and a 26 percent rise in tablet sales.

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