What’s causing the iPhone 4S shortage?

Since its launch in the UK and the US in October, and its staggered roll-out across the globe, there have been reports of a mismatch in supply and demand for the iPhone 4S. This might not seem to have had a huge impact on sales. iPhone deals top the lists in the US with the major carriers and remains resolutely in the top 2 in the UK behind the Samsung Galaxy SII. However, customers have said they have been told to wait several weeks for a handset to arrive. Others claim that if there were more handsets in the UK, its sales figures would be outstripping the competition, such is the level of demand from consumers. So what is holding it back?

Analysts at Rodman and Renshaw claim the problem is a missing component. In a note to investors the firm said the low supplies of this bit of kit would affect availability of the iPhone 4S through the holiday season and up into 2012. However, they didn’t explain exactly what the component actually is.

The issues affecting supply are worse in the US than in the UK. AT&T and Sprint, two of the major carriers in the US, are telling customers they have to wait around three weeks. After the device’s launch in mid-October, Verizon Wireless customers were forced to wait a month to receive their iPhone 4S. Yet the delay has had no impact on demand with each carrier reporting record pre-orders, as customers registered their interest for the device. As Christmas approaches, issues with demand are only likely to increase.

In the UK, the problem is not as severe, although analysts do blame it for the iPhone 4S coming in second behind the SII in the Mobile Tracker chart for November, which monitors sales and interest in smartphones and mobiles.

In terms of availability, Apple’s strategy has been to prolong the excitement around the launch of the device. Staggering its availability across the globe has helped the company engage with consumers and has ensured enthusiasm has swept it along from mid-October through to December, much longer than that for any other smartphone launch in this final quarter of 2011. Limited availability and stock levels could be seen as being an element of that strategy. And Apple does have form, notably the availability of the white iPhone 4, which was extremely limited and turned it into a “must-have” device.

The alternative would be that Apple mis-judged the level of anticipation and interest there would be in the new device. Yet across the electronics industry, ramifications are still being felt after the Japanese earthquake and tsunami which did interrupt deliveries. It could be that the “key component” is comes from Japan and it is that availability that has hit stock numbers for the iPhone 4S.

Whatever the truth is, the iPhone 4S has still managed to break records in 2011. Analysts now predict it will reach 30.5 million unit sales by the end of the year. Wall Street says that is a little lower than they were expecting but it still shows the dominance of Apple when it comes to the smartphone market. If that is Apple doing a lacklustre campaign, then what will the iPhone 5 launch have in store?