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http://www.insanely-great.com/news.php?id=834
15" LCD iMac production to end
By ron carlson, Insanely Great Mac
August 22nd 2002
Insiders say Apple will move its consumer desktop line over to 17-inch models
Digitimes reports that 15-inch iMac production will end in October. The digital daily
quoted unnamed sources in making the claim.
Also, according to the same sources, 15-inch LCD iMac production has already shrunk to
20,000 units per month as Apple begins delivering 17-inch models in volume. The larger
screen model will be offered in multiple configurations, which will likely be
introduced at Macworld San Francisco.
"Sales of the 15-inch iMac have all but stalled under a combination of factors, from
the ongoing PC slump to the model�s high price tags to increasing demand for larger
flat-panel monitors," Digitimes reports. "Earlier, Apple gave a sales target of one
million units for 2002, but sources said half of that level would be more likely,
based on shipments to date."
Cost cutting
All 17-inch LCD iMac production has been shifted to China by the product''s assembler,
Quanta, in order to benefit from lower production costs in the Communist country. This
move is likely necessary in order to maintain the iMac''s pricing relative to Apple''s
other offerings, including the eMac, low-end PowerMac and consumer portable models.
With production ending in October and assuming two to four weeks for shipments to
reach resellers, it''s likely that Apple will loose a refreshed G4 iMac line at
Macworld San Francisco. This timing will allow the company to clear inventory before
the introduction of new models, as well as allow OEMs ample time to transition to the
production of new parts and models.
iMac contractors include Quanta Computer, which assembles the machines; Hon Hai
Precision (Foxconn Electronics in the US), which supplies steel pivoting arms attached
to the panels; and Catcher Technology, which makes the hemispherical bases for the
iMac.
Sources report that LCD iMacs require more than 100 steps to assemble. However, Apple
is said to be pressuring OEMs to reduce costs and prices -- a move said to presage
price cuts -- which will require a simplified design.
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