“Apple’s iPhone production has hit a speed bump due to display screen shortages, says Rodman Renshaw analyst Ashok Kumar, whose sources include Apple supply and manufacturing partners,” Moritz reports. “Kumar says the shortage has forced Apple’s contract manufacturers to cut the iPhone’s monthly production rate to 2 million a month, down from the planned rate of 4 million iPhones a month.”
“The component shortage comes as demand for the new iPhone builds to record proportions. Apple said this week that pre-sales were running 10 times higher than previous levels for the iPhone 3GS,” Moritz reports. “The hitch involves production of in plane switching displays, the key component of Apple’s so-called retina display screens on the new iPhone. Kumar says people close to the production expect to have the issue resolved probably by August, and definitely by fall, which would be in time for the holiday sales rush.”
Moritz report, “Apple’s new iPhone has been a roaring success already, as the crush of demand for pre-orders crashed AT&T Web processing systems this week.”
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