LCD Screen Shortfall Could Mean Apple iPhone 5 Delays: Reports

The Wall Street Journal, citing unnamed sources, on Friday reported that Sharp was expected to start shipping the LCD screens for the iPhone by the end of August, but the Japan-based company ran into manufacturing delays and is unsure when shipments will start.

However, because Sharp is not Apple’s exclusive display supplier, the delay might not affect shipments of the next iPhone. Apple is already receiving similar LCD displays from Japan Display and LG Display, the Journal reported.

[Related: Get 'Em While You Can: 9 Samsung Devices That Apple Wants Banned ]

Reuters reported that Sharp is struggling with manufacturing costs, and that Apple may have to provide Sharp with financial incentives to speed up production.

Apple has been expected to hold a public event unveiling the new iPhones, which feature a new type of LCD screen in which the touch sensors are built into the display instead of in a separate layer, on Sept. 12, with shipments expected to start a couple weeks later.

Sharp had a similar delay for Apple’s iPad screens earlier this year that did not lead to a shortage of iPads, the Journal reported.

News of a potential shortfall in screens for its new iPhone 5 comes at a critical time for Apple. Earlier this month, Apple won its lawsuit against Samsung for patent infringement violations.

As a result, according to several reports, customers are rushing to purchase Samsung smartphones before they get taken off the market, which is a possibility because of the lawsuit. Therefore, a delay in iPhone 5 shipments could test the smartphone's ability to meet consumer demand.

PUBLISHED AUG. 31, 2012