Sharp's Problems Could Spoil Apple's Holiday Season

Loading...
Loading...
Sharp, one of the leading suppliers of Apple
AAPL
devices, has run into some problems while trying to manufacture new displays for the upcoming iPhone 5.
According to
Reuters
, Sharp has fallen behind on its production schedule of the new screen, which is said to be larger than the display featured in the iPhone 4S. This is not the first time that the iPhone 5 was reported to be in short supply. Up until this month, there were reports that suggested the highly anticipated device
may be delayed
. This was due to an anticipated
chip shortage
that would have prevented the iPhone 5 from meeting production demands. In addition to Sharp, LG Display was thought to be developing a
revolutionary display
for a future Apple product, but little is known about the company's progress. While the next-generation iPhone is still expected to
ship in September
, a recent report suggested that Apple may ship
five million fewer units
than anticipated. Under the best of circumstances, this could be difficult for Apple to manage. There could end up being a
large
number of consumers who walk away empty handed. A recent report by ChangeWave Research revealed that the iPhone 5 is in
higher demand
than any other iPhone released. In 2011, Apple faced a
Loading...
Loading...
massive shortage
when the iPad 2 became available. Many consumers lined up at Best Buy
BBY
, Target
TGT
, and other stores across the country, including Apple's own retail outlets, and still could not get one. The shortage lasted for
more than four months
. Apple was much more successful in meeting, (and in many cases exceeding), demand for the third-generation iPad. When it launched in the United States on March 16, there were
more than enough tablets
for everyone in line. Regardless, the new iPad has still become a
huge seller
, and the iPhone 5 is expected to be even bigger. If the aforementioned reports are any indication, this could prove to be Apple's most significant unit shortage yet.
Follow me @LouisBedigianBZ
Loading...
Loading...
Market News and Data brought to you by Benzinga APIs
Posted In: NewsRumorsTopicsTechGeneralAppleChangeWave ResearchiPhone 4SiPhone 5LG DisplayReutersSharp
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...