Foxconn Reportedly Short on In-Cell Displays for the iPhone 5

Market watchers along with sources in Apple’s supply chain are reporting that Cupertino might not meet its estimates of the first-run of iPhone sales in the third-quarter of 2012. The reason? Component shortages.

Particularly, the in-cell touch panels reportedly employed by the next-generation handset are said to be coming in fewer numbers than anticipated.

Produced by Sharp, whose business is now owned in part by Foxconn, in-cell touch panels are said to be thinner and more reliable than traditional IPS (in-plane-switching) displays.

Key sources in Apple’s supply chain reportedly told Taiwanese trade publication DigiTimes that, “Issues related to the poor yields of in-cell panels have been cited previously as possibly disrupting Apple's shipping schedule for new iPhones.”

But that’s not the only component Apple’s short on. The redesigned dock connector is also not coming in great numbers as previously anticipated, said the sources.

According to the same report, “yield rates of the new connectors at Foxconn International Holdings (FIH) have been low due in part to insufficient supply of some key materials.”

Market watchers concluded that, because of a reduction in the first batch of shipments, Apple may experience a short supply upon launch, “which in turn may trigger a buying spree for the new models in the fourth quarter as well as in the first half of 2013.”

In other words, Apple might have to extend the shipping dates for initial iPhone 5 pre-orders, but the supply will become less constrained in the holiday season.

Around that time Apple is said to be planning a new device release – the iPad mini.

This rumored device is said to be Apple’s primary weapon for fighting off competition in the tablet space, offering a high-quality experience at an affordable price.

Needless to point out, it would be a first for the Cupertino giant to cater to all audiences with a cheap yet powerful device.