[ScotiaBurrell]

“Apple is facing significant production constraints due to a move toward in-cell display technology,” Ben Reitzes, an analyst at Barclays, wrote in a research note yesterday.

The supply constraints may be short lived, Dinges said. Because of the large sums Apple spends on components, the iPhone and iPad maker will be the first in line for parts, he said.

Another component that may be causing challenges is the new baseband chip that helps the iPhone 5 connect to LTE, or long- term evolution, wireless networks being introduced by mobile- phone service providers including Verizon Wireless and AT&T Inc. (T) in the U.S. and Deutsche Telekom AG (DTE) in Europe.

Qualcomm Inc. (QCOM), the biggest maker of chips for mobile phones, has said supplies of those parts have been constrained as it moves to a new manufacturing process to build them.

http://www.bloomberg.com/news/2012-0...shortfall.html