Foxconn Struggles with iPhone 5 Demand

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Foxconn can't meet iPhone 5 production demandsA month after the iPhone 5 was released some customers are still waiting in lines to get ahold of theirs, and that's partly the fault of Foxconn -- the company that produces the combination iPod and smartphone for Apple. Hon Hai Precision, the parent company for Foxconn, claimed production issues are to blame.

Terry Gou, Hon Hai Precision Chairman told the Wall Street Journal, "Market demand is very strong, but we just can't really fulfill Apple's requests." He added that the production issues are design related, but didn't elaborate on which parts of the construction process are causing problems.

Foxconn officials said in October that "The iPhone 5 is the most difficult device that Foxconn has ever assembled," calling the design "very complicated."

The company has also dealt with employee backlash over the strict quality standards Apple has for the iPhone 5 because factory workers didn't feel they were adequately trained on how to build the device.

Foxconn is working to improve iPhone 5 deliveries to Apple, but hasn't offered any public timeframes for those improvements.

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