iPhone 5 Display Constraints Eased as Sharp Ramps Up Production

Reuters reports iPhone 5 supply constraints are starting to ease up now that Sharp, a supplier of displays for the new phone has started amp up production:

Sharp Corp is making “adequate volumes” of displays it is known to supply for Apple Inc’s new iPhone5, a company executive said, indicating that a possible bottleneck in supplies of screens may have eased.

Sharp has been singled out by analysts as the reason for iPhone 5 supply shortfalls at launch, due to their lack of display production. According to the story source, Sharp was struggling to keep up with consistent yield rates, as the new thinner iPhone 5 display is difficult to produce, according to analysts.

Back in May, Reuters reported Sharp agreed to supply Apple with display panels for the new iPhone. Their president noted at the beginning of August new panels would start shipping soon, but by the end of the month production was halted due to manufacturing difficulties, only to resume during the week of the iPhone 5 announcement, leading many to believe the late production schedules would affect launch supplies (initial iPhone 5 online pre-orders sold out in one hour).

Apple receives its iPhone displays from Japan Display and LG Display, estimated at 8 million per month from each company, according to Deutsche Securities analyst Yasuo Nakane. Sharp is reported to supply 6 million per month.

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