Ming-Chi Kuo says there are yield rate issues with the fingerprint sensor

Aug 19, 2013 13:19 GMT  ·  By

KGI Securities’ Ming-Chi Kuo has sent out a brief research note to investors signaling some minor setbacks in the production of Apple’s highly-anticipated iPhone 5S.

In his investor note, Kuo reveals (likely after checking with Asian part suppliers) that Apple is having difficulties in building its iPhone 5S mainly because of the fingerprint sensor rumored to go underneath the Home button.

Quoted by AppleInsider, Kuo said in his note that Apple was projected to ship 8.4 million iPhone 5c units in the September quarter, “But difficulties in building the top-of-the-line ‘iPhone 5S’ will reportedly limit that device to just 5.2 million units for the quarter,” according to the report.

However, despite these drawbacks, the iPhone 5C is not expected to become Apple’s best-selling iPhone.

Apple is expected to rapidly increase iPhone 5S shipments by 438 percent, reaching 28 million units in the holiday quarter.

“Despite yield rate issues with fingerprint sensor module and casing, a timetable ensuring improvement has been established, which eases our concerns over 5S production,” Kuo noted.

“We hold a positive view on growth momentum along the iPhone supply chain, for which we expect a jump from August followed by sustained growth into September and (the fourth quarter of fiscal 2013),” the KGI analyst added.

Sources with a solid track record revealed earlier this month that Apple had a September 10 event planned for the unveiling of its two new smartphones.

Reportedly dubbed iPhone 5C and iPhone 5S, the phones would supposedly have their biggest differentiation factor in the pricing department.

The 5C, equipped with a plastic body and current-generation iPhone parts, will theoretically enable Apple to keep production costs at a minimum yet still offer a brilliant iOS experience.

The 5S, which reportedly looks almost identical to the iPhone 5, will be the more expensive iPhone featuring a number of enhancements both inside and out, including a fingerprint sensor, a dual-LED flash for the camera, am updated A7 processor, and more.