The 5.5-inch iPhone 6 is reportedly being delayed due to hardware issues

KGI Securities analyst Ming-Chi Kuo, who has provided accurate Apple product information in the past (timing aside), has released a new research note predicting that supply constraints on key components may result in a serious delay in the release of the larger iPhone 6 model with a 5.5-inch display. According to the note, issues with the in-cell touch panel and coloring of the device could push the launch of the device back to a post-October date, possibly as late as next year: “We think the 5.5-inch model will also have issues with the yield rate of in-cell touch panel and color unevenness of metal casing. Indeed, these problems will likely be even more complicated with a larger size. In addition, from a technical perspective, we don’t expect sapphire cover, used for the first time on the 5.5-inch model, will easily pass the drop test near term. We are conservative about 5.5-inch iPhone launching by end-2014. Even if the product is launched in 2014, it is likely to take place after mid-4Q14, which is later than the September-October of consensus, with shipments being lower than consensus of 15- 20mn units.” The report goes on to note that the phone’s sapphire display (which we’ve seen recently in a scratch test video) may not prove sturdy enough in drop tests to go to market yet. Kuo recently noted that the upcoming iWatch, which will also use a sapphire crystal display, will enter mass production in November. Kuo predicts that when the larger iPhone 6 finally ships, fewer than 15-20 million units will be available.