iPhone 5 shortage - thinner display to blame
Five million units sold in just three days is great business no matter how you look at it, but according to reports Apple could have sold far more iPhone 5’s on its opening weekend had it not been for a shortage of display panels.
The iPhone 5 uses, for the first time, in-cell displays, a technology that embeds touch sensors into the actual screen. This helps keep the handset’s waistline thin. Apple, for the main, is using LG Display Co and Japan Display Inc to produce the -inch size glass screens.
However, to help maintain a higher production line, Apple also recruited Sharp Corporation. Yet according to Barclays, Sharp has been trying to fix defects in its screens, delaying shipment orders.
Apple CEO Tim Cook announced that over 5 million iPhone 5’s had been sold in its opening weekend, which, although hugely impressive, falls short of the 6-6.5 million units some analysts had predicted.
With the thinner displays in short supply, this appears to be because of shortage of components rather than a lack of demand.