A few months ago I told you that the new iPhone 5 would use a new technology which allows Apple to buy thinner screens and develop thinner iPhones. Until now, the information regarding the possible use of this technology was based only on analysts' forecasts, but a recent decrease in the revenues of the Wintek company seems to indicate the intentions of Apple. Wintek produces touch panels for Apple, recently the company recorded a significant decrease in deliveries of this type of panels and it is speculated that this decrease would not be related to a decrease in sales of iDevices, but to the implementation of in-cell panels in the iPhone 5.
This morning, Wintek reported consolidated June sales of NT$5.22 billion, down 33.6% MoM and much worse than the average MoM June sales increase of 1% over the past seven years. Based on our records, this appears to be the biggest MoM sales drop for Wintek since the later part of 2008 and one of the most significant drops we have on record (back to 2005). We would not overreact to the weakness at Wintek as it relates to Apple because we believe Wintek may be losing market share in key next generation Apple products and therefore ramping down certain programs.
Whether or not this decrease in sales has anything to do with Apple and the implementation of in-cell technology remains to be seen, but it is clear that Wintek has fallen off the "bars" of those at Apple. Sony, Toshiba or Sharp could produce these new screens for Apple, but only in the fall we will find out if all the rumors have any truth in them.
