Faced with productions problems with the iPhone X, Apple Inc. (AAPL) allowed suppliers to reduce the accuracy of Face ID to make manufacturing easier and keep the device on schedule, reported Bloomberg.
Citing people familiar with the situation, Bloomberg reported the move on the part of the Cupertino, Calif., iPhone maker to allow a downgrade of the accuracy of its facial recognition technology underscores just how hard it is for advanced technology to find its way into small form factors. After all, Apple’s demands placed on suppliers and contract manufacturers are legendary, so for it to allow a degradation in performance is telling.
In the past, production snafus were relegated to popular iPhone colors or with the iPhone Watch, but any supply issues with the iPhone X could be a blow to the company. With a starting price of $999, it's expected to be a major revenue driver for the company.
Bloomberg noted that in September, Foxconn Technology Group removed as many as 200 employees from the iPhone X production line as Apple struggled to get enough components for the device. The issue was with the 3D sensor for Face ID, which relies on a mathematical model of users’ faces to unlock the phone or make digital payments. The system is smart enough that it can’t be tricked by photos of users and can recognize the owner of the phone even in the dark.
Reduced Component Orders
The problems with the iPhone X are even prompting Apple Chief Operating Officer Jeff Williams to meet with Terry Gou, the chairman of Foxconn, the iPhone assembler. According to a report from the Nikkei Asian Review, citing two industry sources, the meeting will happen later in October when Williams is in Taiwan for the 30th anniversary of Taiwan Semiconductor Manufacturing Co.
The sources did not say what the two executives plan to discuss, but it's likely to focus on how to contend with what is being called a “manufacturing bottleneck” for the iPhone X. Foxconn is the only assembler for the iPhone X while Sharp Corp., which is controlled by Foxconn, and LG Innotek, are in charge of assembling 3D sensors for the device.
It's not just the iPhone X that Apple is having issues with. There are also concerns that the iPhone 8 isn’t resonating with consumers, prompting Apple to scale back on orders. Citing unnamed sources, Taiwan’s Economic Daily newspaper reported last week that it told suppliers of the iPhone 8 and iPhone 8 Plus that it will cut orders for components by as much as 50% during the last three months of 2017. The newspaper reported that the reduction in component orders could result in iPhone 8 device shipments of as low as 5 million units per month in November and December.
By:Donna Fuscaldo (Investopedia).
Photo: NDTV.
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