That's right! The lottery "Iphone5"

That's right, even buying an iPhone 5 requires a lottery.

　　“Currently, purchasing an iPhone 5 in Hong Kong still involves a lottery system. Registration is done online through the official Apple website from 9 am to 5 pm the day before, with a lottery draw taking place after 5 pm. Successful applicants receive an email notification to pick up their phone at the Central Apple store the next day. If you don't receive an email, you can register again the following day.” A consumer planning to buy an iPhone 5 through the Hong Kong website told the First Financial Daily yesterday, expressing surprise at the difficulty of purchasing an iPhone 5. Currently, the Hong Kong lottery system involves a 24-hour registration period.

　　Lin Zonghui, an analyst at DIGITIMES Research in Taiwan, believes that insufficient production capacity due to a high defect rate is the cause of the iPhone 5 shortage. This has caused Apple's stock price to fall 4% on Wednesday, reaching its lowest level in 5 months, with a decline of over 20% in the past month and a half.

　　Among Apple's major iPhone 5 suppliers in Taiwan, there are three companies: Foxconn, Pegatron, and Quanta Computer. The cost of Foxconn's manufacturing accounts for 40.86% of the iPhone 5's total cost, the highest among them.

　　“Producing iPhones isn't easy; we still can't meet the huge demand.” Foxconn chairman Terry Gou recently stated in a media interview that the actual shipment volume of iPhone 5 is far lower than Apple's requirements.

　　Since its launch in late September, initial iPhone 5 sales have been lower than expected, and supply shortages quickly followed.

　　Gou stated that the iPhone 5 is the most complex phone Hon Hai has ever assembled. It uses a new coating material, making the metal casing prone to scratches. Therefore, Hon Hai had to introduce a new quality inspection procedure to reduce the likelihood of product damage.

　　“The iPhone 5's requirements for scratches and dents on the aluminum alloy frame and back cover are 0.02mm.” A production line worker at Shenzhen Foxconn stated on their Weibo that meeting these requirements is difficult, and coupled with the rush to meet deadlines, workers face significant psychological pressure daily.

　　A person in charge of a company in Shenzhen that produces Apple peripherals told reporters that Apple has extremely high and complex requirements for every aspect of the production process, especially manufacturing. “Even for Apple accessories, we have to consider many issues. Take speakers, for example; Apple has strict standards for the force applied when placing and removing an Apple phone, as well as the force exerted on the speaker itself.”

　　Gou stated that the market demand for iPhone 5 is large, and manufacturers are working hard. “The manufacturing process is extremely complex, making it one of the most challenging products ever. Coupled with Apple's stringent product requirements, ensuring quality extends the manufacturing time.”

　　Balancing worker hours and improving production yield, Foxconn chairman Terry Gou faces a dilemma. Apple is also experiencing decreased profit margins due to the increased production costs of the iPhone 5.

　　Although Apple has taken various measures, such as finding new contract manufacturers, to reduce the occurrence of various destabilizing factors, the results have not been significant so far.

　　Although Pegatron's orders from Apple are steadily increasing, the company also faces concerning issues, some of which are similar to those faced by Foxconn.

　　“Currently, it's still a game of give-and-take between Apple and its contract manufacturers. However, it's foreseeable that Apple will find it difficult to replace Foxconn.” Lin Zonghui told reporters that Foxconn possesses a vast workforce, lower labor costs, and strong vertical integration capabilities, and the shortage isn't simply a matter of who compromises.