Yield Rates for iPhone X Components Are Terrible Right Now

Stories detailing Apple's (NASDAQ: AAPL) iPhone X delays just keep coming in -- we're talking about two fresh reports thus far this week, and it's only Tuesday.

Various component suppliers are currently suffering from low yield rates, which measure the proportion of units from a production run that can be used. Units that cannot be used are wasted, and nobody wants that. Low yield rates effectively drive up the average cost per unit. Manufacturing always has a high proportion of fixed costs and overhead, but total costs must then be spread out over a smaller number of units.

The TrueDepth camera system. Image source: Apple.

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Source: Fool.com