“A shortage of a new display technology used in Apple’s iPhone 5 is likely a big reason why the company shipped a lower-than-expected number of handsets in its debut weekend,” Patrick Seitz reports for Investor’s Business Daily.

MacDailyNews Take: “Lower than expected” by people without adequate information to make proper estimates.

“The 4-inch in-cell touch-screen display also is the most expensive component of Apple’s new smartphone, according to a tear-down estimate Tuesday by IHS iSuppli,” Seitz reports. “It’s estimated to cost $44 each, up from $37 for the 3.5-inch display used in last year’s model, the iPhone 4S.”

“Japan Display, LG Display and Sharp are making the displays for Apple, but they have experienced production problems, analysts say. The new displays pack the touch sensors and liquid crystals into the same layer, allowing for thinner LCD screens and a thinner phone,” Seitz reports. “At 7.6 millimeters thick, the iPhone 5 is 18% thinner than its predecessor.”

Seitz reports, “Besides the in-cell touch-screen, there’s a new baseband chip for 4G LTE wireless from Qualcomm and a new case for the device, Sterne Agee analyst Shaw Wu said. “‘It’s a combination of these new components that’s causing the supply constraints.’”

Read more in the full article here.

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