Apple’s ambition to deliver a thinner and sleeker iPhone may have backfired due to manufacturing issues. For the first time, an iPhone handset uses the advanced display technology called in-cell screen that allows physical integration between the touch sensor and the display panel. iPhone 5’s svelte design has contributed directly to millions of units sold in a very short span of time. Unfortunately, in-screen display is painstakingly difficult to manufacture and this has directly contributed to bottleneck issues.
Apple stores need steady supply of iPhone 5 and delays in production could have some impact, such as drops in stock price and .
iPhone accounts for about two-thirds of Apple’s profit and a successful debut of new iPhone model is essential for maintaining growth. Apple has enlisted major display manufacturers including Sharp Corp., Japan Display and LG Display. Baseband chips may also be causing challenges in production process and it is needed to connect to LTE network.