Sep 26

Apple set a company record by selling over five million units of the iPhone 5 during the device’s launch weekend and run out of iPhone 5 pre-orders in just about an hour. Because of this the shipping estimates for new orders are up to 3-4 weeks. Bloomberg reports that Apple’s tight supplies are a result of the new in-cell technology being used for the iPhone 5’s display.

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.

Macrumors explains “The technology integrates the touch sensors directly into the display rather than adding them as a separate layer, allowing for thinner displays.”

Bloomberg noted: Manufacturing enough of those parts for Apple has been challenging for LG and Japan Display, analysts at the London- based financial-services provider said.

“Apple is facing significant production constraints due to a move toward in-cell display technology,” Ben Reitzes, an analyst at Barclays, wrote in a research note yesterday. “Apple is struggling to keep up with demand.”

Source [macrumors & bloomberg]

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