Production of Apple's next iPhone, commonly referred to be the iPhone 5S and is scheduled to be unveiled on September 10, could reach only 3-4 million units in the third quarter of 2013 compared to 10 million units as originally planned due to a delay in production of fingerprint sensors needed for the iPhone 5S, according to industry sources.
Mass production of the fingerprint sensors was originally scheduled to begin in May at Taiwan Semiconductor Manufacturing Company (TSMC) and then to be packaged at Xintec, a TSMC subsidiary, the sources indicated.
However, the production of the sensors has been delayed due to issues related to integration between iOS 7 and fingerprint chips, as well as a low yield rate at packaging firm Xintec, the sources revealed.
Reportedly, the delay is caused by issues related to integration between the sensor and iOS 7 software. The sources claim that Apple and its suppliers will be able to ramp up production at the end of August for the sensors, resulting in production of the iPhone 5S to ramp up to 28-30 million units in Q4 2013, just in time for the holiday season.
The iPhone 5S is all but confirmed for a September 10 announcement -- where Apple could also unveil an iPhone 5C.