Will Apple’s New iPhone Eat Up Competitors’ Resources?

Production of the next iPhone could cause a touch screen shortage for other vendors, with the new Apple (NASDAQ:AAPL) device expected to consume as much as 70 percent of the capacity. Production is expected to begin at the end of the second quarter or the start of the third quarter, according to Digitimes, which means supply of low-temperature poly-silicon touch screens could be tight in 2012 and 2013 for vendors such as those making Google (NASDAQ:GOOG) Android phones.

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Apple is said to be creating 4-inch displays for its next iPhone, up from the current 3.5-inch touch screen. The phone’s display is expected to feature in-cell touch panels and LTPS technology, making the high-resolution retina display even thinner. The in-cell panels are expected to be built by LG Display (NYSE:LPL), Japan Display, and Sharp. The three have a quarterly production capacity of 95 million LTPS panels.

Apple could be will producing more than 40 million iPhone units in the third quarter of calendar 2012, and 45 million units in the fourth quarter of the year, according to experts. It sold 37 million iPhone units in the holiday quarter of 2011, with the newly launched iPhone 4S spearheading the charge.

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