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  • Early iPhone 5S Shipments rumored to be Constrained Due to Poor Manufacturing Yields


    The folks over at DigiTimes are reporting that the iPhone 5S may see constrained supplies at launch due to poor yields of certain components. In particular, the issues are said to be related to chips supporting fingerprint recognition and the device’s LCD according to the publication’s industry sources. The following was mentioned by DigiTimes regarding the matter:

    The fingerprint recognition chip is designed by AuthenTec, of which Apple acquired for US$356 million in July 2012. Issues related to the original design of the chip reportedly caused the lower yield rates, claimed the sources, adding that Apple outsources the production of the fingerprint recognition chips to Taiwan Semiconductor Manufacturing Company (TSMC) and the packaging of the chips to Xintec.
    The report continued by claiming that production for the new device was to originally begin in late June or early July but due to yield problems, the ramp up will be delayed until late July. The delay is said to result in Apple delaying shipments of three million iPhone 5S into the fourth quarter. Just recently, Jeffries analyst Peter Misek indicated that “small batch production” of the iPhone 5S had begun last month, with mass production ramping up later this month.

    Previously both KGI Securities analyst Ming-Chi Kuo and Reuters both claimed that production issues would likely result in a delay for Apple’s newest flagship device. However, at Apple’s Q1 2013 earnings call, Tim Cook warned that prediction future business for Apple based on supply chain data was “impossible” as the company has multiple sources for components to account for varying yields and inconsistent supplier performance.

    We’ll have to wait and see how things turn out. What we do know is Apple’s iPhone 5S is likely to launch sometime in the fall.

    Source: DigiTimes
    This article was originally published in forum thread: Early iPhone 5S Shipments rumored to be Constrained Due to Poor Manufacturing Yields started by Akshay Masand View original post
    Comments 13 Comments
    1. REMED1AL's Avatar
      REMED1AL -
      356 Million doesn't buy what it used to huh!
    1. KraXik's Avatar
      KraXik -
      Is it me or is there always a delay of some sort before launch?
    1. bmwraw8482's Avatar
      bmwraw8482 -
      Quote Originally Posted by KraXik View Post
      Is it me or is there always a delay of some sort before launch?
      It's definitely just you. It's never happened with any apple products, ever
    1. Albut's Avatar
      Albut -
      5s what is the s for. SMALL improvement?
    1. SnapIt's Avatar
      SnapIt -
      No surprise here. Same ol sh.it, different year

      Quote Originally Posted by Albut View Post
      5s what is the s for. SMALL improvement?
      Of course, same as every other S model
    1. mlee19841's Avatar
      mlee19841 -
      Lol. Is it me or every year apple says their low on something?
    1. Scotty Manley Silberhorn's Avatar
      Scotty Manley Silberhorn -
      Quote Originally Posted by mlee19841 View Post
      Lol. Is it me or every year apple says their low on something?
      It's not apple. It's people who create rumors about apple. Usually they're wrong.
    1. SnapIt's Avatar
      SnapIt -
      Whoa this have never happened before. Well except for last year and the year before and the year before and the year before...............
    1. blkcadi's Avatar
      blkcadi -
      I guess I'm OK with Apple delaying the release, rather they get it right the first time.
    1. hogcia's Avatar
      hogcia -
      I could care less about this phone, thank god for iOS7!! I will wait till next year for a real upgrade.
    1. vinaygoel2000's Avatar
      vinaygoel2000 -
      Quote Originally Posted by hogcia View Post
      I could care less about this phone, thank god for iOS7!! I will wait till next year for a real upgrade.
      I'm staying on 6.1.2 on my 5 until iOS 7 is jailbroken. That's when I'll buy the 5S. Can't lose PDANet, amongst others.
    1. jOnGarrett's Avatar
      jOnGarrett -
      Quote Originally Posted by KraXik View Post
      Is it me or is there always a delay of some sort before launch?
      marketing hype.

      every time they switch from Samsung they have issues.
    1. King_O_Hill's Avatar
      King_O_Hill -
      Yeah, quality takes more time.