Production glitch may delay Apple’s iPhones shipping delays

Production glitch may delay Apple’s iPhones shipping delays
The Siliconreview
12 September, 2017

Apple’s iPhone has been delayed in production due to a ‘glitch’ in its manufacturing, reported The Wall Street Journal. The production bugs pushed the manufacturing process back by about a month, the Journal reported, citing people familiar with the matter.

According to MacRumors, which cites from Wall Street Journal report, the reason for the delay is the new OLED screen. The Wall Street Journal report says, “The iPhone manufacturing process requires more steps and more layers of adhesive and protective film than are involved in Samsung’s manufacturing process.

Apple is relying on Samsung for the OLED displays given the South-Korea technology giant are the dominant player in this segment.

KGI Securities’ analyst Ming-Chi Kuo estimates that Apple is paying $45 to $55 for LCD displays in current iPhone models. But Samsung is asking for $120 and $130 per unit. This could be the reason why the next high-end iPhone is going to be so expensive.

There are a few reasons why Apple has no choice but to pay a small fortune. First, Apple needs OLED displays more than ever before. Rumor has it that the next iPhone is going to feature a taller screen that is going to nearly fill the front of the device.

“There never appears to be a shortage of chatter about alleged production glitches at Apple but they seem to be able to crank out tens of millions of iPhones each quarter,” BTIG analyst Walter Piecyk said in an email to Reuters. “I also doubt someone interested in a new iPhone will change brands if they have to wait a few months,” he added.