Apple supplies have been behind due to the back orders of the screen supplied by LG. Until the orders are fulfilled demands will not be met.
Apple used the technology in the first major iPhone overhaul since 2010 to make the device more svelte, an attribute that helped lure a record 5 million buyers in three days. Yet producing in-cell screens is also more painstaking than earlier screen types, contributing to bottlenecks.
“This is like the opening weekend for the summer blockbuster movie,” said Tom Dinges, senior principal analyst at IHS ISuppli. “They needed to get a lot of products in the door during a tight window, and these supply constraints that were talked about probably did have some impact.”
The iPhone is Apple’s top-selling product, accounting for about two-thirds of its profits. A successful debut is critical for the company to maintain the growth that has led investors to make it the world’s most valuable company.
Apple had also enlisted Sharp Corp., Japan’s largest maker of liquid-crystal displays, to round out its suppliers and lessen reliance on longer-term partner LG Display. Yet the Japanese company is struggling to reduce defects in screens that include the new technology and was unable to start shipments before the iPhone debut, according to Barclays Plc.
