The screen of the Apple Watch can delay production and affecting sales

On 10 April the booking of Apple Watch process opens and the 24th of the same month starts the official sale of the smartwatch in key strategic markets for the firm’s Cupertino. However, in the absence of a month to the kick off of the first smart watch Apple, become worrying information of considerable magnitude to the multinational California if finally confirmed the suspicions. And is that LG Display, leading provider of screen of the Apple Watch, would be experiencing production issues with the display OLED to such an extent reduce the ability to manufacture a 30-40%.

The first preview of the Apple Watch came at the end of last year, when the company provided the first details of the clock. However, it was not a novelty for 2014, but it the commercial launch of the wearable is set for April 2015. That decision caused a stir since when came the time of its premiere, the characteristics of the equipment will not be so prominent, especially when the competition is a step ahead and react quickly, launching new generations of this type of device.

Production reduced up to 40%

Despite the initial confidence in the product, Apple may have to face a new and important setback that would seriously affect the volume of sales of the Apple Watch. And it is that according to reports from Asia, LG would be experiencing problems with the manufacture of the intelligent clock display. The search to provide a more flexible and lightweight panel would have led to problems not foreseen in the production of the same. So severe seems the matter that the production volume of the screen would have reduced up to 40%, which means an error chain that would affect directly to sales. In case outside little, Quanta, another of the partners of the US firm involved in the Assembly of the equipment, would be also experiencing problems in the manufacture of the wearable. In this case the slowdown of production would be linked to the speed in the Assembly of each unit, initially limited given the small size of the pieces that make up the Apple Watch.

Three million units to 1.5 million

And it is that of the approximately three million projected smartwatches units per month, Apple finally would be limited to the availability of around 1.5 million watches during the first month on sale. This figure would be below initial forecasts, so the demand for the clock would cause delays in orders to the point of affecting the sales of the model. The company’s stock will suffer as much as the day of presentation of the Apple Watch?

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