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iPhone 5 rumors: Apple may have problems with iPhone 5 stocks due to low yield rates of in-cell touch panels

by Nicole
July 31, 2012 at 10:09 am

Apple suppliers are experiencing problems with low yield rates of the in-cell touch panels for the next iPhone.

The iPhone 5 will feature a screen based on a new technology called in-cell that will allow Apple to improve image quality, to provide a better autonomy and reduce component size.

This new technology has to be implemented in screens using a new manufacturing process and it seems that Apple’s Asian partners are having problems in manufacturing these displays.

According to a Digitimes report, Japan Display, LG Display and Sharp are the companies that produce these screens, but only Japan Display manages to produce a one out of two screens without problems.

The site writes:

“Rumors recently circulated in the touch-panel industry have claimed that yield rates of the in-cell touch panels at Japan Display, LG Display and Sharp – reportedly the panel producers for Apple’s next-generation iPhone – are too low to generate profits. Apple reportedly even has offered subsidies – estimated at US$10-15 per panel produced – to the panel suppliers in order to encourage them to produce more and ensure stable shipments after the launch of its 2012 iPhone.

The poor yield rate of in-cell panels is likely to cause certain disruption to Apple’s shipping schedule for the new iPhone, according to the rumors.”

Japan Display has a yield rate of 50%, with the rest of the companies scoring much worse results.

Apple has increased by 10 – $ 15 the price for each touch panel produced by companies.

Even with the promise of a better cost per touch panel, manufacturers cannot meet the number of components set out in contracts and Apple could produce only a quarter of the screens that are scheduled to power the iPhone 5 in the next quarter.

Because of these problems, the launch of the iPhone 5 will bring few devices in shops.

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