Report: Apple increasing iPhone 3G production

August 6th, 2008 by Tom Krazit

Demand for Apple's iPhone 3G remains strong, which could be forcing Apple to ramp production beyond its original estimates.

TechCrunch is reporting that Apple has asked Foxconn, formally known as Hon Hai, to increase production of the iPhone 3G to 800,000 units a week. That pace translates to about 40 million units a year, far greater than what most analysts had been expecting the company to sell in the iPhone 3G era.

A short-term bump in production capacity may not imply that Foxconn will keep up that pace; TechCrunch's report alludes to "some concerns about quality control" on the part of either Apple or Foxconn related to the increase. With current iPhone stock shortages there is clearly pent-up demand that may not be sustainable over the rest of the year without causing problems.

But more countries are expected to join the official ranks of iPhone users in the next several months, and the Christmas shopping season is usually the catalyst for all sorts of gadgets. A production increase could offset that demand while making it easier to get an iPhone 3G without playing iPhone roulette at an Apple store.

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