For Apple, surprise hunger for big phones leaves money on table
New York — Apple Inc said it was caught off guard by how many people want to buy its biggest smartphone, the iPhone 7 Plus, and the miscalculation may hit profits this holiday season. The technology leader was not sure it could make as many units of the iPhone 7 Plus as consumers wanted in time for the Christmas shopping rush, Apple’s CEO Tim Cook told analysts on Tuesday. It would manage to make enough of the smaller iPhone 7s, though, he said. Demand was strong "particularly on the iPhone 7 Plus versus our forecast going into the product launch", Cook said. The bigger phones bring bigger profits, and Apple’s forecast for thinner than expected margins concerned investors after it reported quarterly earnings on Tuesday. Apple is still getting to know how consumer interest varies for larger and smaller phones, having launched two competing sizes only in 2014, he said.
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