Screen shortage scuppers iPhone 4 sales

Apple faces a component shortage that will cut monthly shipments of its iPhone 4 in half, an analyst has warned.
 
Production of the IPS-based Retina display used in the new device won’t ramp to the four million units per month Apple needs to hit its targets until the supplier – South Korea’s LG Display – increases production capacity late summer, Rodman & Renshaw analyst Ashok Kumar said Friday.
 
In a research note, Kumar predicts a “non-trivial risk” to supplies of the screens – which are also used in the iPad – and that demand will outstrip supply throughout the September quarter, CNet.com reports.
 
And the company may not be fully caught up with supply issues until December, as a reduction of sales of the iPhone 3GS from September onwards, heaps more pressure on the firm.
 
Last week AT&T stopped taking pre-orders for the iPhone 4 after taking 600,000 orders in just one day, while O2 has revealed it will prioritize existing iPhone customers when the device hits stores later this week, according to ITProPortal.com.

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