Apple faces a component shortage that will cut monthly shipments of its iPhone 4 in half, an analyst has warned.

 

Production of the IPS-based Retina display used in the new device won’t ramp to the four million units per month Apple needs to hit its targets until the supplier – South Korea’s LG Display – increases production capacity late summer, Rodman & Renshaw analyst Ashok Kumar said Friday.

 

In a research note, Kumar predicts a “non-trivial risk” to supplies of the screens – which are also used in the iPad – and that demand will outstrip supply throughout the September quarter, CNet.com reports.

 

And the company may not be fully caught up with supply issues until December, as a reduction of sales of the iPhone 3GS from September onwards, heaps more pressure on the firm.

 

Last week AT&T stopped taking pre-orders for the iPhone 4 after taking 600,000 orders in just one day, while O2 has revealed it will prioritize existing iPhone customers when the device hits stores later this week, according to ITProPortal.com.