iphone5 Foxconn admits struggle to keep up with iPhone demand

Foxconn, one of Apple's primary suppliers and assemblers, has revealed that it is having difficulty keeping up with demand for the iPhone.

Foxconn, one of Apple's primary suppliers and assemblers, has revealed that it is having difficulty keeping up with demand for the iPhone.

 
It is a problem that many other companies would love to be having, but Terry Gou, Chairman of Foxconn, told journalists that the company is “falling short of meeting the huge demand.” 
 
Gou said it is not easy making iPhones, a fact that is hampered not only by high demand, but by intense scrutiny and criticism of Foxconn's treatment of workers, following a spate of suicides in recent years and numerous investigations into factory working conditions. Higher pay for staff and a cap on working hours has undoubtedly weakened Foxconn's ability to pump out iPhones at an incredible rate.
 
iphone5 Foxconn admits struggle to keep up with iPhone demand
 
Foxconn could pick up the slack in iPhone supply by transferring some assembly from Hon Hai Precision Industry, the primary sub-division of Foxconn, which is responsible for making the iPhone range, to Foxconn International Holdings (FIH), a division which makes phones for Nokia and Huawei.
 
Gou refused to confirm the rumours that FIH would be helping out in future, but Reuters reports that stocks rose by up to 35 percent after Citigroup upgraded its shares to “buy,” paving the way for a huge boost to supply for the iPhone. The question is if it will be enough and if Apple can maintain its momentum with future models.
 
Source: Reuters