This iPhone 5 Bottleneck Is Clearing Up

Apple's (Nasdaq: AAPL  ) new iPhone 5 can be rather hard to come by right about now. Ordering a new one on the company's website will take up to three to four weeks to ship, and by all accounts supplies are tight. That is indeed the reason Apple sold "only" 5 million units on the device's launch weekend.

Fingers have begun pointing at Sharp as the primary bottleneck, one of three suppliers for the in-cell touch display being used. Apple has also tapped Japan Display and LG Display (NYSE: LPL  ) for these panels, and Sharp saw some delays ramping up manufacturing and improving production yields.

According to a recent Reuters report, Sharp says it's now producing "adequate volumes" of its panels for the iPhone 5, which should help Apple's supply situation with the device. CEO Tim Cook has already said the company sold out of its "initial supply" and is "working hard to build enough iPhone 5s for everyone" in a press release.

Expectations of iPhone 5 unit sales remain sky high, so Cupertino needs to scramble to satiate consumer demand for the device. That's especially true considering this is the most aggressive global iPhone rollout for Apple, which launched the device in an additional 22 countries on Friday as well as adding a handful of domestic regional carriers including Leap Wireless' (Nasdaq: LEAP  ) prepaid Cricket brand.

That's a lot of iPhones Apple needs to distribute, and the display is one of the most important components. Sharp needs to hurry up and churn out those displays posthaste.

The introduction of the iPhone 5 is an event Apple investors have been looking forward to for months. The stakes are high and the opportunity is huge, so to help investors understand this epic Apple event, we've just released an exclusive update dedicated to the iPhone 5 launch. By picking up a copy of our premium research report on Apple, you'll learn everything you need to know about the launch, and receive ongoing guidance as key news hits. Claim your copy today by clicking here now.

Fool contributor Evan Niu owns shares of Apple, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Apple. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.


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