Friday, August 31, 2012

Sharp Delays Supply of Upcoming Apple Inc. (AAPL)’s iPhone LCD Display

Apple Inc.(NASDAQ:AAPL ) is in some danger of not being able to cater to the demand for its new iPhone as Sharp, one of its component suppliers, has not yet started mass production of the LCD screens required, according to a report by the Wall Street Journal.

The other two suppliers of the LCD display screens, Japan Display Co and LG Display Co have already started shipments of the screens for the next generation iPhone but shipments from Sharp have been delayed due to manufacturing difficulties, the Journal said.

The original scheduled date of the shipment was end of August. It remains unclear when the company can start shipping the LCD panels, the report said.

This could create a crunch for Apple later on because with lack of sufficient screens it may not be able to meet the anticipated demand for the phone.

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While it is not expected to delay the unveiling of the phone on September 12 and the launch on September 21, it could limit the availability of the phone later. In fact there have been reports previously of Apple facing production problems with its new iPhone.

Earlier this year, Sharp also delayed shipments of screens for Apple's latest iPad, but there were no apparent supply shortages of the tablet computers.

The delay at Sharp also comes as the Japanese electronics maker, which also makes televisions and solar panels, is struggling to cope with a cash crunch amid approaching debt repayment deadlines.

While sitting on more than $15 billion in interest-bearing debt, Sharp has forecast a net loss of 250 billion yen ($3.18 billion) for this fiscal year through March, as its core businesses remain unprofitable.

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