New iPhone 8 could face supply shortfall after launch

The production glitches pushed manufacturing process back by about a month

Apple Inc's new iPhone had hit production glitches early in its manufacturing process and could lead to supply shortfalls and shipping delays following its launch next week, the Wall Street Journal reported on Thursday.

The company's shares were down 0.5 per cent at $161.11. The production glitches pushed the manufacturing process back by about a month, the Journal reported, citing people familiar with the matter. Apple did not immediately respond to a request for comment.  Fans and investors are eagerly looking forward to the 10th anniversary iPhone 8 to see whether it will deliver enough new features to spark a new generation to turn to Apple. The company is widely tipped to adopt higher-resolution organic light-emitting diode (OLED) displays for the latest iPhone, along with better touchscreen technology and wireless charging — which could come with a $1,000-plus price tag. 

Meanwhile, Apple will have to wait until at least 2019 to be able to move beyond Samsung Electronics for significant alternative supplies of the next-generation OLED screens for iPhones, according to the sources. LG Display is targeting full-fledged shipments of OLED screens in 2019, with only small shipments possible towards the end of next year, they said. 

LG is still negotiating the size of upfront payments and details, though talks are in the final stages, said one of the people. 

Apple has been aiming to adopt OLED technology because of its vibrant colors and lower energy consumption, but has been hampered by limited availability. Samsung, its primary competitor in smartphones, is the dominant manufacturer of OLED screens and has used the technology in its own phones as well as selling it to Apple rivals. 

The Cupertino, California-based company will introduce its new iPhone next week, with one of three models expected to feature OLED panels from Samsung.