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Apple's iPhone X Delays Won't Hurt the Company's Profits

October 24, 2017 00:00 AM UTC
- Updated September 02, 2020 11:37 AM UTC

Apple will just post a huge year in 2018, not 2017.

[MUSIC PLAYING] ROBERT HACKETT: Welcome to Fortune Tech Debate, where we debate the issues of the day in two minutes. Today, we're discussing Apple and production issues related to its new iPhone 10. And is Apple in trouble? ANNE VANDERMEY: No, Apple is not in trouble. Yes, there are production delays. Yes, it's looking like they might have to alter a couple of the features. But ultimately, the company is going to be fine. This is just a hiccup. ROBERT HACKETT: So I disagree. I think that Apple is in a heap of trouble. You know, this is their 10th anniversary iPhone. They're expected to make the bulk of their revenue on this one product. And if they're having these issues in their supply chain right now, that's going to have major ramifications for the company moving forward. ANNE VANDERMEY: So one thing I think we're seeing is that customers are willing to wait. They're willing to wait out the iPhone 8. They're going to be willing to wait out a couple of production delays. There are more people than ever in the pipeline to get an upgrade right now. I think they're going to want the game changing technology, even if they buy it in 2018, rather than 2017. ROBERT HACKETT: Well, let's talk about that game changing technology. Because reports are saying that Apple has actually had to make face ID the slam dunk technology that is on its phone. You can unlock your phone with your face. Reports are saying that they've actually made that less accurate in order to meet some of their deadlines, which they're not meeting, by the way. ANNE VANDERMEY: Yes. It's a little less accurate, but you can still unlock your phone with your face. That's amazing. Face ID has a one in a million chance of getting it wrong, whereas touch ID has a one in 50,000 chance of getting it wrong. So even if it is significantly less accurate, it is still going to be light years better than everything else that's out there. ROBERT HACKETT: So I'm on the record saying that I'm a big fan of face ID. I think it's a great breakthrough, and it's something that is actually making the iPhone 10 look really compelling to me as a consumer. And I'm in the pipeline for an upgrade. I'm one of those masses that actually needs a new phone. But here's where I come from. I'm thinking, why don't I wait another year or two for Apple to hammer out all the issues it's having, to put in the right technology before I go and actually pay top dollar for this thing? ANNE VANDERMEY: That's a fair point, but you see the Pixel, Samsung, they're just not at the same level. People want a phone that's good. And they're willing to pay for it. ROBERT HACKETT: Well, Apple's got a lot of competition in the space. Anyway, time is up. Come to for more Tech Debate. [MUSIC PLAYING]