Currently the demand for the iPhone 5 is exceeding the supply. The supply of the device is controlled by the suppliers that Apple works with and Sharp is one of their biggest suppliers for the iPhone 5 screen. Sharp said that they are making “adequate volumes” of display, which means that a bottleneck in supplies of screens may be balancing out now.
Analysts are blaming a lack of display suppliers for leaving Apple with few iPhones to meet the demand. At the end of August before the new iPhone went on sale, Sharp was supposed to be mass producing at the Kameyama plant in central Japan. However they had fallen behind schedule. Sharp was having a hard time improving low production yields.
Apple buys screens from Japan Display and LG Display. Apple started selling the iPhone 5 on September 21st and sold over 5 million in the first 3 days.
“The iPhone 5’s 4-inch low-temperature polysilicon (LTPS) touch-panel display with in-panel switching (IPS) is exceptionally difficult to produce at high yields,” stated Deutsche Securities analyst Yasuo Nakane in a report from Sept 14. Nakane estimated the iPhone screen capacity at Japan Display and LG Display is at around 8 million each month and around 6 million at Sharp.