Next-Gen Apple (AAPL) iPhone Production in Q3 May Be Less than Half of Expectations

August 12, 2013 8:46 AM EDT
Production of the next-generation Apple (Nasdaq: AAPL) iPhone might see a delay as some of the high-tech parts continue to see quality issues.

Digitimes said that Apple's next iPhone will include a fingerprint sensor in the "Home" button, which has largely been speculated in the past. However, due to stringent requirements on the part, iPhone production in third-quarter 2013 might only be able to reach 3 or 4 million units, down from 10 million originally expected.

The sensors were to be made by Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: TSM) and packaged at Xintec, sources said. Production was slated to begin last May. Engineers from Apple and TSM have been sent to help out on sensor packaging at Xintec.

In addition to lower-than-expected yields, there was an integration issue between the sensors and iOS 7.

Despite lower numbers at launch, production of the next iPhone might hit 28 million to 30 million units in fourth-quarter 2013.

Apple is down 0.7 percent early Monday. The company is expected to unveil the next iPhone on September 10th.

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