Wednesday, October 3, 2012

Apple Inc. (NASDAQ:AAPL): Production Rates for In-cell Touch panels of iPhone 5 get Better

The technology used for in-cell touchscreen displays for Apple Inc.(NASDAQ:AAPL)’s latest offering was previously facing some issues related to supply, but the production rates are getting better now that the problems have been resolved. Analyst Shaw Wu with Sterne Agee stated that the assembly of the iPhone is the main issue because the handset is quite tough to put together.

The company is under immense pressure because they have already set a standard and all products need to be exactly as they have been projected to public. Wu has computed roughly that Apple sold around 27 million iPhone units after its launch. He predicts that number will go up to 46.5 million in December, thereby creating record.

The demand for iPhones is huge and there have been speculations of Apple not being able to match the supply. Wu says that these are minor problems that will exist for only a short while. After it has overcome the issue, Apple will be able to keep up with the demands of users easily. Some reasons for inconsistencies in supply have been attributed to the integration of 4G LTE wireless capability into a 28-nanometer fabrication process and the aluminum and glass casing of the smartphone.

New orders for iPhones will soon be dispatched and the new iPhone will reach more than 100 countries by the year end via 240 carriers. Sterne Agee stuck to its “buy” rating and also kept the price target at $840. 

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