MMi reported September 25th that the culprit in the iPhone 5 shortage is thought to be Apple's in-cell displays, which help make the refreshed iPhone lighter and thinner, while preserving the remarkable clarity of the display screen.
“Apple is facing significant production constraints due to a move toward in-cell display technology,” analyst Ben Reitzes of Barclays said at the time. “Apple is struggling to keep up with demand.”
Fortunately, on Tuesday, word broke that Apple may have finally turned the corner. Sterne Agee analyst Shaw Wu tells investors this morning that in-cell screens are seeing improved yeilds with each passing day.
“Demand appears robust with its online store quoting a lead time of 3-4 weeks,” Wu writes. “In addition, we are seeing improving yields on in- cell touch screens meaning it is becoming less of a constraint. Instead, what appears to be limiting production is assembly of the iPhone 5 itself as it is not easy to build. We view these as short-term issues and continue to see a powerful product cycle.”
Wu continues to project that Apple will sell an astounding 27 million iPhones in the September quarter and another 46.5 million for the December quarter.
Source: Forbes
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