TICKER: iWait: Could the iPhone 5 be delayed? Key component hits ‘manufacturing difficulties’

One of the firms believed to be making the screen for Apple’s new iPhone is struggling with manufacturing problems, it has emerged.

The gadget, expected to be revealed at an event on September 12 in San Francisco, is believed to have a larger, thinner screen that uses less power, boosting the handset’s battery life.

Some reports claim it could give a boost of up to 40 per cent.

However, today it emerged Sharp has fallen behind schedule on production of screens.

It is believed the Japanese display maker is struggling with high costs that have cut into its margins on the screens.

It has also blamed ‘manufacturing problems’ on the delay, according to the Wall street Journal.

The source, who is familiar with Sharp’s production operations, did not give an indication of how far behind the output had fallen.

The source spoke on condition that he not be identified because of the sensitive nature of the disclosure.

Sharp President Takashi Okuda said on August 2 that his company would begin mass production and shipments from its Kameyama LCD plant in central Japan this month.

The facility is widely known to make screens for Apple, but Sharp has declined to acknowledge that Apple is a customer.

Kameyama ‘is operational,’ Sharp spokeswoman Miyuki Nakayama said, without giving details of either output or shipment levels.

Apple, which is also using other suppliers such as Japan Display and South Korea’s LG Display Co for displays, is believed to be planning a major product launch on September 12.

That has raised expectations the latest iPhone model will be in stores soon.

The new iPhone screens will be thinner than previous versions with the use of so-called in-cell panels.

The new technology embeds touch sensors into the liquid crystal display, eliminating the touch-screen layer found in current iPhones.

Sources earlier told Reuters that the panels will extend 4 inches corner to corner — 30 percent bigger than current iPhones.

Sharp’s shares slid 13 percent on Friday to 198 yen as uncertainty swirled around talks with Hon Hai Precision Industry for the Taiwanese company to buy a 9.9 percent stake in its fellow Apple supplier.

Daily Mail

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