Last month, the tech news blogosphere reported that the primary reason for the iPhone 5 shortage is Apple’s in-cell displays – the panels that make the refreshed iPhone lighter and thinner than any previous model.
“Apple is facing significant production constraints due to a move toward in-cell display technology,” analyst Ben Reitzes of Barclays said last week. “Apple is struggling to keep up with demand.”
Auspiciously, on Wednesday, news came that things may finally be turning around for Apple. Sterne Agee analyst Shaw Wu says that in-cell screens are “seeing improved yields” with each passing week.
“Demand appears robust with its online store quoting a lead time of 3-4 weeks,” Wu said. “In addition, we are seeing improving yields on in- cell touch screens meaning it is becoming less of a constraint. Instead, what appears to be limiting production is assembly of the iPhone 5 itself as it is not easy to build. We view these as short-term issues and continue to see a powerful product cycle.”
Wu believes that Apple will sell some 27 million iPhones in the September quarter and another 46.5 million during Q4.
