★ iPhone 5S Shipments May Be Constrained at one Supplier, Due to Low Fingerprint Sensor Yields. In what has become something of a tradition ahead of Apple’s product launches, Digitimes is reporting. This time, that the iPhone 5S may see constrained supplies at launch due to poor yields of certain components. In this case, the issues are said to be related to chips supporting fingerprint recognition and the device’s LCD, according to “industry sources.”
★ The fingerprint recognition chip is designed by AuthenTec, an enterprise that Apple acquired for $356 million in July 2012. Issues related to the original design of the chip reportedly caused the lower yield rates, claimed the sources, adding that Apple outsources the production of the fingerprint recognition chips to Taiwan Semiconductor Manufacturing Company (TSMC) and the packaging of the chips to Xintec.
★ The report also claims that production for the new device was supposed to start in late June or early July, but because of yield problems the ramp-up may be delayed at these suppliers until late July. According to Digitimes’ sources, this may result in Apple delaying shipments of three million iPhone 5S into the fourth quarter.
★ Jeffries analyst Peter Misek, mentionied Monday (July, 15) that “small batch production” of the iPhone 5S had begun last month, with mass production ramping up later this month.
★ In early April, a more reliable source, KGI Securities analyst Ming-Chi Kuo reported that production issues would likely “delay” iPhone 5S into September and that Apple’s third quarter may see smaller shipment growth than previously expected.
★ TruePrint fingerprint sensing technology from AuthenTecReuters followed up with its own report in late April, mirroring Kuo’s report claiming that production issues would likely result in delay’s for Apple’s newest flagship device.
★ Recall, at Apple’s recent 2013 earnings call, CEO Tim Cook gave warning to the Analyst arena (and indirectly to the Rumor Community) that predicting future Apple activities, based on supply chain chatter, was unreliable as Apple has multiple sources for device components, each delivering varying Yields and inconsistent supplier performance.
★ Apple’s iPhone 5S is expected to launch sometime in the fall of 2013. Irrespective of the analyst’s writings or the rumor mill, Apple will release the next iteration of the iPhone when the device is deliverable at the very high quality standards that Apple demands, and certainly not mitigated by any chatter.
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