Will This SOLVE Apple’s iPhone 5 Supply Constraints?
After a delay in August, Sharp is set to begin producing Apple’s (NASDAQ:AAPL) iPhone 5 screens again. Sharp joins Japan Display and LG Display (NYSE:LPL) as a manufacturer of screens for the new phone. With Asymco analyst Horace Dediu projecting September 21-23 sales upwards of 6 million, the displays are coming just in time.
The iPhone 5 boasts a 4-inch screen which is thinner than its 3.5-inch predecessor. The change is made possible by in-cell display technology, which combines the liquid crystal display with touch sensors. Sometimes manufacturers have difficulty efficiently switching production to new technology like this.
The shipping delay may have evolved from difficulties in producing the screen, which lead to financial troubles for Sharp. The company has mortgaged a number of its offices and factories for nearly $2 billion so that it could stay in business. The company was trying to sell a 9.9 percent stake to Taiwanese company Hon Hai, but that deal has been delayed as well.
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