Low Yield Rate of In-Cell Touch Panels to Disrupt Shipments of New iPhone?

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Posted July 31, 2012 at 2:26pm by iClarified

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.

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Low Yield Rate of In-Cell Touch Panels to Disrupt Shipments of New iPhone?

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Joe - July 31, 2012 at 2:41pm

Last thing apple needs is a supply problem at launch, not to mention the holiday season. Guess I'll have to camp out again to get one.

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Nitro Junkie - July 31, 2012 at 3:09pm

Or a problem with the way they were produced and assembled. If they're rushing things just to get them done on time for assembly and eventually shipment of the phone just to meet demand for launch. That's all they need is another "gate"!

Pre-order online - July 31, 2012 at 3:14pm

Or you could just.. Have it delivered to your doorsteps the day of..

Joe - July 31, 2012 at 3:17pm

I'll be hitting refresh at 3 in the morning just like the person above me.

Joe - July 31, 2012 at 5:15pm

Never pre ordered. Always wanted in line overnight with a bunch of friends and a few cases of beers.

Pre-order Man - August 1, 2012 at 1:50am

Got my 4 shortly after the launch, pre-ordered the 4S, otherwise waited in line for the 3G and 3GS... Pre-ordering is the way to go. And yeah, we'll probably be refreshing from 3AM 7AM, but it's part of the Apple experience. Enjoy!