Financial crisis affects iPhone supply chain

Filed in archive News on November 7, 2008

Demand concerns due to global financial situation has created lots of problems for Apple supply chain especially on the iPhone side.

Tech Daily reported that for the second day in a row, there is a report on Apple (AAPL) cutting iPhone production.

In December quarter iPhone production was likely to be down 40% from the previous quarter, worse than the 10% production cut he had previously expected. A UBS analyst also reported this week that his checks find "iPhone production and the associated supply chain may be experiencing some incremental weakness due to concerns about end demand."

I personally liked to take a look at the effect of this external misfortunes on Apple balance sheet; unfortunately the results are usually combined inventory numbers related to all products; However in the case the inventory levels increase in Apple's supply chain, it can be concluded that Apple's supply chain is not resilient enough as it is supposed to be. What do you think?