Low Yield Rates May Affect The Next Generation iPhone’s Shipping Schedule

Apple, just six weeks away from the proclaimed iPhone event date, could be having issues with their display suppliers. According to Digitimes, rumors around the touch-panel industry have indicated yield rates for the next generation iPhone’s in-cell touch panel “are too low to generate profits”.

Japan Display, LG Display, and Sharp are supposedly the three tipped display producers for the next generation iPhone. But due to poor yield rates, the estimated combined shipments of in-cell panels have only been estimated at 4 to 5 million units. Apple’s target goal for the third quarter is 20 to 25 million, according to past rumors.

Between all display corporations, Japan Display has the best yield rate — and it’s only 50 percent per unit. This is still is an inadequate amount of coinage to bank a profit.

Even Apple’s subsidies aren’t even enough encouragement, according to Digitimes:

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.

Due to these issues, industry sources have noted TPK  Display being a potential alternative. But that idea doesn’t look promising because the full-lamination process was used with older iPhone models and the display would be required to go through nearly 3 months of verification testing.

Ultimately, this in all likelihood is just another rumor. Digitimes is well known for being unreliable at this point.

[via AppleInsider]