Rumored iPhone 5S now gets another hurdle. The yield and ICs issues can affect its September launch. Apple will reportedly reduce the initial shipment amount of the device by delaying almost 3 million units to fourth quarter.
Bad news folks. Apple's rumored iPhone 5S, slated to launch in September, can have reduced amount of initial shipments. The iPhone maker company is facing yield and ICs issues. The problem is with the manufacturing of fingerprint-recognition chips. These chips actually have lower yields rates. AhthenTec designed the fingerprint recognition chip that was acquired by Apple in last July for US$356 million. Due to poor yield issues, Apple took supply of these chips from Taiwan Semiconductor Manufacturing Company (TSMC) which are packaged by Xintec. Also the ICs of LCD drivers are also not working upto the mark.
The industry sources told Digitimes that "Volume production of fingerprint-recognition and LCD driver chips for the iPhone 5S should have started at the end of June or early in July, but issues related to yield rates will delay commercial production of the two chips to the end of July, therefore affecting the initial supply of the iPhone 5S."
The sources also claimed that Apple will delay the shipments of approximately 3M units to 4th quarter. While on the other hand, Apple's rival Samsung has twice revised its S4 shipments for 3rd and 4th quarter. Apple needs to focus on the competition and try to make it possible to launch a competitive amount of iPhone 5S in 3rd and 4th quarter.