Verizon: Apple has an iPhone supply problem

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by CNN.com

CNN.com

Posted on October 17, 2013 at 9:59 PM

Updated Thursday, Oct 17 at 9:59 PM

Verizon said Thursday it wasn't able to meet customer demand for new iPhones because of supply contraints.

Chief Financial Officer Fran Shammo told analysts on a conference call that Apple couldn't provide Verizon with enough iPhone 5S smartphones in the first weeks following its release, resulting in a backlog of orders.

 

That might not bode well for Apple's fourth-quarter financial report, which is due out on Oct. 28. While the company reported a record 9 million during the first weekend, this was, after all, the first time Apple released its latest iPhone in the west and China simultaneously.

With the iPhone backlog, Verizon's 3.9 million iPhone activations in the third quarter were unchanged from the second quarter. The good news for Apple and Verizon: iPhone activations were up 26% from the same quarter a year ago. And whatever new iPhones Verizon customers couldn't buy in September simply got pushed over to the current quarter, Shammo said.

IPhone activations made up 51% of the 7.6 million smartphones Verizon customers activated between July and September.

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