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Apple was #1 in Tablet Application Processor Revenue in Q1 & Fingerprint Recognition Chips Hamper iPhone 5S Production

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In April we reported that "Apple's new Fingerprint Sensor may be the Culprit Holding back the iPhone 5S." Today, DigiTimes is reporting that poor yields of fingerprint-recognition chips and LCD driver ICs will likely force Apple to reduce shipments of the rumored iPhone 5S, which is slated for launch in September 2013, according to industry sources.

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 explained.


The original design of the fingerprint recognition chip designed by AuthenTec is reportedly causing the lower yield rates. Sources added that Apple outsourced the production of the fingerprint recognition chips to Taiwan Semiconductor Manufacturing Company (TSMC) and the packaging of the chips to Xintec.


The delays will cause an estimated three million units of the initial shipments of the iPhone 5S to be pushed into the fourth quarter.


Apple Took 40% of Tablet AP Revenue in Q1 2013


In another report today we learn that the tablet AP market in first-quarter 2013 was led by Apple with 40% revenue share, followed by Texas Instruments (TI) and Samsung with 13% and 10% share, respectively. The remainder of the Top-5 is rounded out by Nvidia and Intel, Strategy Analytics said.


On the smartphone front, Qualcomm led the AP market with 49% revenue share in the first quarter, followed by Apple with 13% share and Samsung with 12%, Strategy Analytics indicated.


One More Thing


DigiTimes is also reporting today that Foxconn (Hon Hai Precision Industry) plants in Zhengzhou that are mainly in charge of manufacturing products for Apple, has raised the age requirements for recruitment from 18-40 to 23-40. Some market watchers believe this is meant to accelerate its progress to automation. Yet this may also be a means of trying to lower suicide rates that gain negative international headlines.


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