“Sharp Corp has fallen behind schedule on production of screens for Apple Inc’s latest iPhone just weeks before a planned major launch, a source told Reuters on Friday,” Reiji Murai reports for Reuters.

“The Japanese display maker is struggling with high costs that have cut into its margins on the screens, raising the question of whether Apple might provide financial incentives to speed up production, the source said,” Murai reports. “The source, who is familiar with Sharp’s production operations, did not give an indication of how far behind the output had fallen.”

Murai reports, “Sharp President Takashi Okuda said on August 2 that his company would begin mass production and shipments from its Kameyama LCD plant in central Japan this month. The facility is widely known to make screens for Apple, but Sharp has declined to acknowledge that Apple is a customer.”

“Apple, which is also tapping other suppliers such as Japan Display and South Korea’s LG Display Co for displays, is planning a major product launch on September 12,” Murai reports. “The new iPhone screens will be thinner than previous versions with the use of so-called in-cell panels. The new technology embeds touch sensors into the liquid crystal display, eliminating the touch-screen layer found in current iPhones. Sources earlier told Reuters that the panels will extend 4 inches corner to corner — 30 percent bigger than current iPhones.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]