Sharp hits delays producing screens for Apple's next iPhone - WSJ
LCD maker Sharp Corp. has not yet started mass producing displays for Apple's next iPhone, prompting concerns of a component shortage ahead of the device's anticipated launch, according to a new report.
Citing a "person with knowledge of the situation," The Wall Street Journal reported on Friday that Sharp had originally intended to start shipping iPhone screens to Apple by the end of August. But those shipments have been delayed because of "manufacturing difficulties," sources reportedly said.
Now it is said to be "unclear" when Sharp will in fact be able to begin shipping displays to Apple. Sharp is said to be one of three LCD suppliers for the next iPhone, joining Japan Display Co. and LG Display Co. — both of which are already shipping screens for the next iPhone, according to the Journal.
The latest details comes just over a week after a previous report claimed that Apple has seen some production hiccups in building its next-generation iPhone. While the issues aren't expected to delay the anticipated Sept. 12 unveiling and Sept. 21 launch, reports have suggested the problems could limit the availability of the new iPhone when it goes on sale.
Sharp also saw delays earlier this year in providing displays for Apple's third-generation iPad. The high-resolution Retina display on the device was said to be so difficult to manufacture that only Samsung supplied Apple with screens at the device's launch.
Friday's news is the latest in a series of bad headlines for the company, which has seen its stock price drop by 70 percent in a five-month span this year. As soon as today, Apple's manufacturing partner Foxconn is expected to announce it has reached a deal with Sharp to buy at least a 9.9 percent stake in the Japanese LCD maker.
Both Sharp and Foxconn hope that by aligning, they will be able to gain a larger role in Apple's supply chain for devices like the iPhone and iPad. The deal has also prompted speculation that the companies could be joining in an effort to build display panels for Apple's rumored television set.
Sharp's president announced earlier this month that his company planned to begin shipping screens for Apple's next iPhone in August. The new handset is expected to feature in-cell touch panel technology that will allow the touchscreen to become even thinner, allowing for a thinner overall design or more space for components like the battery.
Citing a "person with knowledge of the situation," The Wall Street Journal reported on Friday that Sharp had originally intended to start shipping iPhone screens to Apple by the end of August. But those shipments have been delayed because of "manufacturing difficulties," sources reportedly said.
Now it is said to be "unclear" when Sharp will in fact be able to begin shipping displays to Apple. Sharp is said to be one of three LCD suppliers for the next iPhone, joining Japan Display Co. and LG Display Co. — both of which are already shipping screens for the next iPhone, according to the Journal.
The latest details comes just over a week after a previous report claimed that Apple has seen some production hiccups in building its next-generation iPhone. While the issues aren't expected to delay the anticipated Sept. 12 unveiling and Sept. 21 launch, reports have suggested the problems could limit the availability of the new iPhone when it goes on sale.
Sharp also saw delays earlier this year in providing displays for Apple's third-generation iPad. The high-resolution Retina display on the device was said to be so difficult to manufacture that only Samsung supplied Apple with screens at the device's launch.
Friday's news is the latest in a series of bad headlines for the company, which has seen its stock price drop by 70 percent in a five-month span this year. As soon as today, Apple's manufacturing partner Foxconn is expected to announce it has reached a deal with Sharp to buy at least a 9.9 percent stake in the Japanese LCD maker.
Both Sharp and Foxconn hope that by aligning, they will be able to gain a larger role in Apple's supply chain for devices like the iPhone and iPad. The deal has also prompted speculation that the companies could be joining in an effort to build display panels for Apple's rumored television set.
Sharp's president announced earlier this month that his company planned to begin shipping screens for Apple's next iPhone in August. The new handset is expected to feature in-cell touch panel technology that will allow the touchscreen to become even thinner, allowing for a thinner overall design or more space for components like the battery.
Comments
Surely Mr. Cook accounts for speed-bumps like this in Apple's supply chain...
Quote:
Originally Posted by brutus009
Surely Mr. Cook accounts for speed-bumps like this in Apple's supply chain...
Maybe. But every supplier counts when you have to produce 10s of millions every quarter. This is why Apple cannot walk away from Samsung as a supplier despite the legal clashes.
Maybe… this could also be one of those "information leaks" meant to nudge the stock downward before a high-buying season… we're poised for a pretty massive boost in the share price across September/October, and again after the holiday numbers come out… As always, there are reports that favor downward price pressure just before these big jumps. Have you noticed that pattern? I certainly have...
I call BS.
IF there really is a delay and if the screens aren't going to be shipping by the end of August, there's absolutely no way that Apple could possibly have phones available by Sept 21. You need to ship panels from Sharp to Foxconn. Then assemble them. Then test them. Then package them. And then have enough of them on the shelf for a product launch - all in 3 weeks.
If there's any truth to this rumor at all, it would undoubtedly mean that availability of the phones would be delayed. I doubt that there's any truth to it - if they're going to launch on Sept 21, they should already have a sizable stockpile of phones. There is, however, just one possibility that might make the rumor true - if Sharp is the second supplier of panels and Apple has already received millions of panels from someone else.
This will be the first of many salvos from short sellers, and will probably last through October (the Mini).
Quote:
Originally Posted by jragosta
I call BS.
IF there really is a delay and if the screens aren't going to be shipping by the end of August, there's absolutely no way that Apple could possibly have phones available by Sept 21. You need to ship panels from Sharp to Foxconn. Then assemble them. Then test them. Then package them. And then have enough of them on the shelf for a product launch - all in 3 weeks.
If there's any truth to this rumor at all, it would undoubtedly mean that availability of the phones would be delayed. I doubt that there's any truth to it - if they're going to launch on Sept 21, they should already have a sizable stockpile of phones. There is, however, just one possibility that might make the rumor true - if Sharp is the second supplier of panels and Apple has already received millions of panels from someone else.
Sharp is only one supplier, and it's SOME of their production. You can't read too far into it.
Funny how everyone screams get away from Samsung, yet everyone else ends up being unreliable while they always nail their yields.
Quote:
Originally Posted by jragosta
I call BS.
IF there really is a delay and if the screens aren't going to be shipping by the end of August, there's absolutely no way that Apple could possibly have phones available by Sept 21. You need to ship panels from Sharp to Foxconn. Then assemble them. Then test them. Then package them. And then have enough of them on the shelf for a product launch - all in 3 weeks.
If there's any truth to this rumor at all, it would undoubtedly mean that availability of the phones would be delayed. I doubt that there's any truth to it - if they're going to launch on Sept 21, they should already have a sizable stockpile of phones. There is, however, just one possibility that might make the rumor true - if Sharp is the second supplier of panels and Apple has already received millions of panels from someone else.
That was my first thought too. Why were there reports as far back as April/May/June that Sharp was already cranking out screens for the iPhone 5? Unless those were BS as well?
I'll be grabbing my tent now. See you guys in line.
Quote:
Originally Posted by mkart4
I'll be grabbing my tent now. See you guys in line.
Don't do it. You'll be cold, sleeping rough and starving for nothing. Wait for one in a mail like everybody does.
Quote:
Originally Posted by KindredMac
That was my first thought too. Why were there reports as far back as April/May/June that Sharp was already cranking out screens for the iPhone 5? Unless those were BS as well?
Probably not, the news in April came out assuming Hon Hai will foot the bill for the production line. The story was that Hon Hai changed its mind after Sharp wanted to sells its share to them too, and need something Sharp could not handed over. For now no screen is being made. All news channel said the same thing; Sharp does not have the cash to start the production, and Hon Hai want new terms before they give Sharp that cash.
Both side are in Tokyo today trying to sort things out. Has Apple send the peacemakeing team? There is not enough time for corporate spat.
Can I ask KindredMac to not leave the house and stay on Bloomberg or CNBC for a few days, pretending to be Apple Insider correspondences? I really want to know how it will go.
New Year is approaching and the budget is enough for either iPhone5 or Galaxy iii but not both. I will have to go with whatever in stock, if it is not iPhone5 well... damned.
Quote:
Originally Posted by Harbinger
Maybe. But every supplier counts when you have to produce 10s of millions every quarter. This is why Apple cannot walk away from Samsung as a supplier despite the legal clashes.
I'd be willing to bet they have contracts requiring them to keep Samsung on as a manufacturer for X years on Y different parts, and that's why the transition away from Samsung components is or will be so slow.
If true; then time for someone to open a can o whoopass! (I miss that phrase)
Quote:
Originally Posted by tribalogical
Maybe… this could also be one of those "information leaks" meant to nudge the stock downward before a high-buying season… we're poised for a pretty massive boost in the share price across September/October, and again after the holiday numbers come out… As always, there are reports that favor downward price pressure just before these big jumps. Have you noticed that pattern? I certainly have...
indeed. this is what I call noise. But I dont see what can drive the stock price up until sept 12, pretty much everything is price in.
Maybe hardware part leaks on the ipad mini or an Apple TV. Otherwise I think we will see only noise that will tend to lower the stock price. On iphone event, depending on whats announced, then the stocks is in for a bumpy road, one way or the other.
There is also the "sell on the news" effect. If too many people think it will happen, the stock will sell before the news, not after.
Quote:
Originally Posted by brutus009
I'd be willing to bet they have contracts requiring them to keep Samsung on as a manufacturer for X years on Y different parts, and that's why the transition away from Samsung components is or will be so slow.
Maybe that too. But honestly, can Apple easily replace Samsung's capacity and quality? The Galaxy S (which is the blatant copycat) has been out for a while now. Surely Apple could/would have contractual freedom to reduce using Samsung as a supplier by now if possible?
Quote:
Originally Posted by mkart4
I'll be grabbing my tent now. See you guys in line.
Quote:
Originally Posted by Fairthrope
Don't do it. You'll be cold, sleeping rough and starving for nothing. Wait for one in a mail like everybody does.
Not to mention that you'll have to put up with smarmy Samsung shills showing off Samsung's latest iPhone knockoff...
Quote:
Originally Posted by anantksundaram
Ah, the usual pre-intro FUD begins.
This will be the first of many salvos from short sellers, and will probably last through October (the Mini).
So true. Every single Apple product release, and we get the same "knowledgable information" from someone who has "checked the supply chain", and their tales of various delays, constraints, problems cropping up, etc. That or some kind of internal crisis at Apple, or a bunch of features that never materialize so that everyone can talk about how Apple really "dropped the ball" by failing to "manage expectations."
At this point I just ignore the rumors. It used to be fun, back when it was about Apple enthusiasts getting excited and playing amateur detective, studying elevator shots for evidence of Photoshopping and poring over the least shred of information like cold war Kremlinologists. But this? The endless "reports" of how many ordered, how many they'll sell, how long delayed, what incremental technologies made the cut, what the likely BOM will come in at, on and on and on, it's just tiring. Not fun at all.
Quote:
Originally Posted by allmypeople
If these reports are true.... Anyone else starting to feel bad for Sharp???
Seems like we've been reading/hearing about LCD production problems from them constantly. Company must have serious internal issues!?
Yeah I do feel for them, actually… it used to be their screens were the cutting edge of display tech… their TVs always looked the best, their laptop panels, and so on. Always great quality.
They exist in a very tough niche in a very tough market… up against stiff competition in their own country (Japan) and then lots of upstarts too… Not an easy market to survive in much less own.
I hope they pull through...
Originally Posted by Strat09
Sept Launch my ass. I say there's 4 to 7 more weeks of production, testing, shipping box manufacturing, and then 2 Weeks for an announcement of the iPhone event for T Cook and the guys to make a 6th iPhone Promo, and Pres, and iOS 6 should go through at least 2 more beta's before the gold master build is released. So no Sept 12 Event announcement. You need to account a lot of things before a product launch, including event location preparation, (Placing an Apple Logo on the building) and Things inside the building relating to their latest releases. Sept 12, hah, and no iPad Mini will ever launch alongside an iPhone. Especially after all the work apple has been doing with Mountain Lion and the new iPad and Macbooks.
Please, please, please stop. You can't keep ignoring what we're saying and then expect anything else you say to not also be ignored.
Quote:
Originally Posted by jragosta
I call BS.
IF there really is a delay and if the screens aren't going to be shipping by the end of August, there's absolutely no way that Apple could possibly have phones available by Sept 21. You need to ship panels from Sharp to Foxconn. Then assemble them. Then test them. Then package them. And then have enough of them on the shelf for a product launch - all in 3 weeks.
If there's any truth to this rumor at all, it would undoubtedly mean that availability of the phones would be delayed. I doubt that there's any truth to it - if they're going to launch on Sept 21, they should already have a sizable stockpile of phones. There is, however, just one possibility that might make the rumor true - if Sharp is the second supplier of panels and Apple has already received millions of panels from someone else.
You wouldn't know it from reading this article, but Apple gets panel from at least three suppliers. LG being one. Sharp another. Japan Display being the other. I think Apple ditched Samsung. So just because Sharp might be struggling doesn't mean the other two are. The iPhone will launch on time, but might in fact experience back log until Sharp catches up or the other two can increase capacity.