A new report that has surfaced is claiming that Apple is preparing for its largest initial production run of iPhones, betting that larger-screen models will lure consumers now attracted to similar phones from their competitors. Yet according to new supply chain rumors, Apple is having some initial delays relating to the 5.5 inch model due to their choice of In-Cell displays.
According to the report, one of the possible hiccups that Apple's larger 5.5 inch display model may be experiencing involves the production of in-cell displays which allow the screens to be thinner and lighter by integrating touch sensors into the liquid crystal display.
To factor in the possibility of a higher failure rate for displays, Apple has asked component makers to prepare for up to 120 million iPhones by year-end. Apple made a similar request last year when preparing for the iPhone by ordering 90 million units.
The 5.5-inch iPhone screen would face an additional manufacturing complication if it uses a cover using sapphire crystal, a more durable but costly alternative to glass, people familiar with the matter said.
Apple's iPhone production forecast assumes a surge in demand from Apple's partnership with China Mobile Ltd., the world's largest carrier, which started offering the iPhone earlier this year. Bigger-screen smartphones are also popular in China and other emerging markets where the smartphone is replacing the personal computer as a main computing device. For more details on this, see the WSJ report.