Low Yield Rate of In-Cell Touch Panels to Disrupt Shipments of New iPhone?
Apple suppliers are reportedly facing problems with low yield rates of the in-cell touch panels destined for the next iPhone, reports DigiTimes.
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. 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.
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.
Japan Display is said to have the best yield rate at 50% which is still too low to generate profits. LG is steadily improving its yield rate but is unable to ramp up production just yet. Sharp's yield rates are not improving and Apple has reportedly asked the company to complete the validation process again.
These problems have resulted in only 4-5 million touch panels produced in July, according to the report. Apple is said to be targeting sales of 20-25 million iPhones in the third quarter so this is far below the company's supply requirements; however, touch panel suppliers are being encouraged to make more at any cost.
Apple is widely expected to hold an event on September 12th to unveil the new iPhone. The device is expected to ship in late September.