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Lukewarm Apple Inc. (AAPL) iPhone 7 Reviews Reported as Deliveries Begin

Apple Inc. (NASADAQ:AAPL)

The first feedback on Apple Inc. ‘s iPhone 7 have started to come from Japan, where the gadget was launched today. The reviews so far are lukewarm but it’s still early. Apple’s iPhone 7 buyers so far are not complaining about the lack of the headphone jack. The addition of better waterproofing and a contactless transit-card feature are attracting some users in Japan.

Lack of headphone jack not a big deal

Apple Inc. has come up with a lot of changes for its flagship product, such as a faster processor, longer battery life, new water and dust-resistant design and camera upgrades. However, the shape and the size are not that different from the iPhone 6 line, except for one change: absence of the headphone jack. However, that did not deter consumers from showing up on the first day of sales on Friday to get their iPhone 7 models, notes Bloomberg.

Apple Inc, NASDAQ:AAPL iPhone 7

Ayumi Takemura, a consumer who works in Tokyo, said he does not care about the headphone jack. Takemura said the Wi-Fi earphones from Apple are costly, so he will probably purchase something else. Also, Takashi Sato, 44, a professor from Saitama, near Tokyo, said he wants to test the waterproofing feature in the bath. Sato was picking up his pre-ordered iPhone 7 Plus from Apple’s Ginza store, and said, he has been putting his iPhone in a Ziploc bag until now, according to Bloomberg.

In addition, the new contactless functionality of the iPhone that allows users to load their touch-and-go transit cards onto the devices was the main reason for purchasing the iPhone, said several shoppers in Japan.

Apple will need to overcome supply constraints

Now, the challenge for Apple Inc. is to make sure it meets the demand with enough supply. A few days back, the Silicon Valley giant said consumers who have not pre-ordered the larger iPhone 7 Plus models will not be able to purchase them on Friday in Apple Stores.

The iPhone 7 Plus model packs a dual back-facing camera system, and as per analysts, inadequate supply of components for the same feature has held up manufacturing. Ben Bajarin, an analyst at Creative Strategies, said they had known for some time that dual lens parts would be constrained at the launch, and no one across the board is shipping these components in good quantity. “The fact that all iPhone 7 Plus models are constrained is a sign of the supply chain,” said Bajarin.

There are two version of the new iPhone model in the market: the iPhone 7 (starting at $649) and iPhone 7 Plus (starting at $769). Both the models come in gold, rose gold, silver, jet black and matte black colors.

On Thursday, Apple shares closed up 3.40% at $115.57. Year to date, the stock is up almost 8% while in the last one-year, it is up over 1%. In the last five-days, the stock is up almost 10%.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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