Sharp's production of new iPhone display behind schedule

 OSAKA (REUTERS) - Production of Sharp's screens for Apple's latest iPhone is behind schedule as the Japanese display maker struggles with low production yields, a source close to the matter told Reuters on Friday.

Apple, which is also tapping other suppliers such as Japan Display and South Korea's LG Display Co for the new, thinner displays, is planning a major launch on Sept 12. That has raised expectations that the product will be its latest iPhone model.

Sharp President Takashi Okuda said on Aug 2 that his company would begin mass production and shipments from its Kameyama liquid crystal display (LCD) plant in central Japan this month. The facility is widely known to make screens for Apple, but Sharp has declined to acknowledge that Apple is a customer.

Kameyama "is operational," Sharp spokesman Miyuki Nakayama said, declining to give details of either output or shipment levels.