Apple Inc. (NASDAQ:AAPL) may have to reduce the amount of shipments of their rumored iPhone 5S due to problems with the fingerprint recognition chips. DigiTimes reports from unnamed sources, “Volume production of fingerprint-recognition and LCD driver chips for the iPhone 5S should have started at the end of June or early in July, but issues related to yield rates will delay commercial production of the two chips to the end of July, therefore affecting the initial supply of the iPhone 5S,” the sources explained.
Apple (AAPL)’s attempts to add more security
Apple Inc. (NASDAQ:AAPL) purchased AuthenTec a year ago in hopes of creating their own advanced fingerprint technology to enhance their smartphones and make them more secure. Thanks to the issues related, the initial design is essentially what caused the lower yield rates. The California tech giant outsourced production of their chips to Taiwan Semiconductor Manufacturing Company. They also outsourced the packaging of the chips to Xintec.
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Their sources added, “About three million units of the initial shipments of iPhone 5S will be delayed to the fourth quarter,” indicated the sources. Meanwhile, Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) reportedly has revised twice its shipment targets of the Galaxy S4 to 17 million and 15 million units, respectively, for the third and fourth quarters of 2013, the sources revealed.
iPhone 5s shipments push back?
It’s reported that about 3 million shipments of the iPhone 5S will have to be pushed back to the fourth quarter. There are estimates that iPhone sales (including 4, 4S, 5, and 5S) could hit 30 million around the same time.
DigiTimes is not always the most reliable source when it comes to rumors, but there could be some truth to this current rumor. The iPhone 5S is expected to debut next month. It’s predicted to be a small upgrade of the iPhone 5. Many Apple Inc. (NASDAQ:AAPL) fans are more excited for the reported iPhone 6 which could debut next year. They are hoping for a major upgrade in design and appearance.