“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,” Siu Han and Jessie Shen report for DigiTimes.

“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,” Han and Shen report. “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.”

Han and Shen report, “Among in-cell touch panel suppliers, Japan Display currently has the best yield rate at 50%, which, however, is still insufficient for the firm to make profits from the touch panel production, the rumors claimed. LGD has steadily improved its yield rate of in-cell panels, but remains incapable of ramping up production, the rumors said. Meanwhile, yield rates for the production of in-cell panels by Sharp have not been improved much and Apple has requested that Sharp undergo the validationprocess again, the rumors indicated… Due to the poor yield rates, combined shipments of in-cell panels for the upcoming iPhone are estimated at only 4-5 million units in July – far below Apple’s target of 20-25 million for all of the third quarter.”

Read more in the full article here.

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