Apple iPhone 5 supply hampered by component shortages

“A shortage of a new display technology used in Apple’s iPhone 5 is likely a big reason why the company shipped a lower-than-expected number of handsets in its debut weekend,” Patrick Seitz reports for Investor’s Business Daily.

MacDailyNews Take: “Lower than expected” by people without adequate information to make proper estimates.

“The 4-inch in-cell touch-screen display also is the most expensive component of Apple’s new smartphone, according to a tear-down estimate Tuesday by IHS iSuppli,” Seitz reports. “It’s estimated to cost $44 each, up from $37 for the 3.5-inch display used in last year’s model, the iPhone 4S.”

“Japan Display, LG Display and Sharp are making the displays for Apple, but they have experienced production problems, analysts say. The new displays pack the touch sensors and liquid crystals into the same layer, allowing for thinner LCD screens and a thinner phone,” Seitz reports. “At 7.6 millimeters thick, the iPhone 5 is 18% thinner than its predecessor.”

Seitz reports, “Besides the in-cell touch-screen, there’s a new baseband chip for 4G LTE wireless from Qualcomm and a new case for the device, Sterne Agee analyst Shaw Wu said. “‘It’s a combination of these new components that’s causing the supply constraints.'”

Read more in the full article here.

Related articles:
DisplayMate: Apple’s iPhone 5 offers best smartphone display we have tested to date – September 24, 2012
iPhone 5 sales disappoint as Apple fails to produce units fast enough to meet demand – September 24, 2012
Apple iPhone 5 misses analysts’ estimates with over 5 million units sold in first weekend – September 24, 2012
Apple: iPhone 5 sales exceed five million units in first weekend; demand exceeded initial supply – September 24, 2012


  1. The FUD that has been going around has paid off handsomely for the brokers. They pumped up the stock to $700 and sold their holding. Now a $40 drop in the share price will allow them to buy back in. Then they can start pumping up the stock for the next quarter up to Xmas.

    1. Agree. I expect a very good earnings report for October 15. Five million opening weekend with another 2-4 through the end of the quarter. Next report when the iPhone has been on sale for a full quarter will tell the story. See you then.

  2. The FUD is offering a good buying opportunity for AAPL – options expire this Friday the 28. Max pain for this Friday is 690 and for October it is 640. The news stories will need to support the October drop… if Apple does have an event for iPad mini, and you start to see call volume intensify, buy then… if not, end of October will be the bargain for AAPL, before it makes it swing up for the end of the year.

  3. they’re all FUD being spread by Wall Street, no way those people
    or media pundits would know actual supply problems on Apple,Inc.
    they can only spred rumors to drive share price down. Low life
    Wall streeter

  4. Didn’t they say the shortage at first was the lightning bolt connectors in the phone? Now its the screen holding up… next will be the processor chip because its built by samsung and they are so mad at Apple for ditching their screens that they are slowing production…

      1. Oct 9th to Sept 28th for both my 16 white and 64 black. Lot’s of FUD and propaganda but the facts do not lie. Devices are being manufactured and delivered ahead of time and that is not fiction.

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