Prepare for Long Lines - No Pre-order for Apple iPhone 5S (AAPL)
If you plan to get a new Apple (NASDAQ: AAPL) iPhone 5S, plan on standing in line to get it.
At least if you plan to get the phone on its release date, September 20. While the new low-cost iPhone 5C will go on preorder Sept. 13, the same is not true for the iPhone 5S. Apple Insider suggested the lack of a preorder for the 5S could indicate supply chain problems.
Ever-secretive Apple offered no clues. A company representative told Apple Insider only that the iPhone 5S would be available online and that there would be no pre-order program. No reason was provided for the lack of a pre-order system for the phone.
Analysts predicted that some of the new and improved technology Apple planned to offer in the new phone could result in lower production yields. These include the new 64-bit A7 chip, the M7 motion co-processor, and the dual LED flash unit designed to yield higher quality low-light pictures.
Then there’s that Touch ID fingerprint sensor. Apple Insider noted that reports came out as early as July that Apple was struggling with low yield rates for the technology behind that feature.
KGI Securities analyst, Ming-Chi Kuo said Apple would ship only 5.2 million 5S units in the September quarter, compared with 8.4 million 5C phones over the same period. Kuo blamed the anticipated lower 5S production numbers on issues with the fingerprint sensor.
Kuo added, however, "Despite yield rate issues with fingerprint sensor module and casing, a timetable ensuring improvement has been established, which eases our concerns over 5S production."
If you don’t want to stand in line to get your 5S, you do have the option of placing an online order on the release date. While that won’t put a new phone in your hands on September 20, the Mac Observer opined that if you are among the first to place your online order on the release date, you should have your unit as early as Monday, Sept. 23.
Since Apple did not explicitly advertise the distinction between the 5C and the 5S when it comes to pre-ordering, some media outlets have reported that the 5S will also be available for pre-order on September 13, according to the Mac Observer.
In addition to features already mentioned, the 5S will also include the ability to take multiple photos in rapid succession and then automatically choose the best one for you. The fingerprint sensor, of course, is the most novel new feature and one that provides a level of security not available in any other smartphone on the market to date.
At the time of this writing, Jim Probasco had no position in any mentioned securities.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.