Apple Said To Be Struggling With Optical Fingerprint Sensing

By Caitlin Huston Markets MarketWatch Pulse

Apple Inc. may have issues with its optical fingerprint sensing functionality, Pacific Crest analysts said Monday, citing conversations with suppliers. The analysts say they do not believe the supplier for Apple's optical fingerprint module has set orders for production, which indicates that Apple may not be ready for it yet. Even if Apple is able to solve the problem within the next month, the analysts say it could lead to a delay of its OLED iPhone. If it takes longer, Apple may have to get rid of fingerprint sensing on the OLED phone and possibly turn to 3D sensing technology. Still, the analysts did not change any estimates for Apple or its suppliers, saying it is still early in the production cycle. The analysts have a $150 price target and overweight rating on Apple. Shares of Apple have gained 17.5% in the past three months, compared to the S&P 500's gain of 3%.

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