In-Cell Displays May Be Culprit in iPhone 5 Shortage
Although no one feels bad for Apple about its record opening weekend of new iPhone sales, reports are surfacing that Apple may have been able to sell more than five million units of the new iPhone 5 so far if not for the cumbersome supply constraints presently hobbling the iDevice maker.
The culprit in the shortage is now thought to be Apple's in-cell displays, which help make the iPhone lighter and thinner, while preserving the remarkable clarity of the display screen.
“This is like the opening weekend for the summer blockbuster movie,” said Tom Dinges, senior principal analyst at IHS ISuppli. “They needed to get a lot of products in the door during a tight window, and these supply constraints that were talked about probably did have some impact.”
A report from Bloomberg Tuesday presents the suspicion that only about 10 million units of in-cell panels will be available in the calendar third quarter. And that could spell big trouble for Apple and frustrated customers who can't get their hands on the new iPhone.
“Apple is facing significant production constraints due to a move toward in-cell display technology,” Ben Reitzes, an analyst at Barclays, said Monday. “Apple is struggling to keep up with demand.”