Apple Inc suppliers are scrambling to get enough screens ready for the company’s new iPhone 6 as the need to redesign a key component disrupted panel production ahead of next month’s expected launch, supply chain sources said.
It is unclear whether the hiccup could delay the launch or limit the number of phones initially available to consumers, the sources said, as Apple prepares to roll out larger-screen iPhones for the year-end shopping season.
The issue highlights the risks and challenges that suppliers face to meet Apple’s tough specifications, and comes after a separate screen technology problem, since resolved, in making thinner screens for the larger iPhone 6.
Cupertino, California-based Apple has scheduled a media event for Sept. 9, where many expect it to unveil the iPhone 6 with both 4.7 inch and 5.5 inch-screens — bigger than the 4-inch screen on the iPhone 5s and 5c.
Two supply chain sources said display panel production suffered a setback after the backlight that illuminates the screen had to be revised, putting screen assembly on hold for part of June and last month. One said that Apple, aiming for the thinnest phone possible, initially wanted to cut back to a single layer of backlight film, instead of the standard two layers for the 4.7-inch screen, which went into mass production ahead of the 5.5-inch version.
However, the new configuration was not bright enough and the backlight was sent back to the drawing board to fit in the extra layer, which cost time and temporarily halted some screen assembly operations, the source said.
Output is now back on track and suppliers are working hard to make up for lost time, the supply chain sources added.
Japan Display Inc, Sharp Corp and South Korea’s LG Display Co Ltd have been selected to make the iPhone 6 screens, the sources said.
Apple is known to make tough demands on its parts suppliers for new iPhones and iPads, as it competes to create designs, shapes, sizes and features that set it apart and command a premium price in the fiercely competitive gadget market.
This can cause glitches and delays, including screen problems that crimped supplies of the high-resolution version of Apple’s iPad Mini last year.
It also highlights the danger for suppliers of depending too heavily on Apple for revenues, creating earnings volatility.
Earlier this month, Japan Display, said to be the lead supplier for the new iPhone panel, said orders for “a large customer” — which analysts said was Apple — arrived as expected, but shipments might be delayed in the July-to-September quarter.
Japan Display’s reliance on Apple’s cyclical business has made some investors wary. UBS Securities forecast that Apple would contribute more than a third of the Japanese firm’s total revenue in the year to March next year.
The nation’s Apple suppliers and assemblers saw lower-than-expected growth last month even as factories rushed output ahead of new smartphone launches, reflecting the erratic nature of the business.
“Currently, there’s a small shortage in supply of a specialized component for our communication devices,” a Pegatron Corp (和碩) spokesman said. “This kind of problem regularly occurs and the impact on production is negligible.”
Supply chain sources had previously said challenges with the new iPhone’s screen in-cell technology, which eliminates one of the layers in the LCD screen to make it thinner, caused a delay in the production of the larger 5.5-inch version.
One display industry source said the in-cell issues had now been resolved.
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
Minister of Finance Chuang Tsui-yun (莊翠雲) yesterday told lawmakers that she “would not speculate,” but a “response plan” has been prepared in case Taiwan is targeted by US President Donald Trump’s reciprocal tariffs, which are to be announced on Wednesday next week. The Trump administration, including US Secretary of the Treasury Scott Bessent, has said that much of the proposed reciprocal tariffs would focus on the 15 countries that have the highest trade surpluses with the US. Bessent has referred to those countries as the “dirty 15,” but has not named them. Last year, Taiwan’s US$73.9 billion trade surplus with the US
Prices of gasoline and diesel products at domestic gas stations are to fall NT$0.2 and NT$0.1 per liter respectively this week, even though international crude oil prices rose last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices continued rising last week, as the US Energy Information Administration reported a larger-than-expected drop in US commercial crude oil inventories, CPC said in a statement. Based on the company’s floating oil price formula, the cost of crude oil rose 2.38 percent last week from a week earlier, it said. News that US President Donald Trump plans a “secondary
RSS