x
Services

Broadcom signals delay to new Apple iPhone launch

Broadcom indicated that the next version of the Apple iPhone will be launched later than usual this year, according to comments made by CEO Hock Tan during the chipmaker's earnings calls for its fiscal second quarter to May 3, 2020.

Tan referred to a "major product cycle delay" at a "large North American mobile phone" customer. As noted by Bloomberg, Tan often refers to Apple this way.

"We would normally expect to see a double-digit sequential uplift in revenue from the ramp of next-generation phones at our large North American mobile phone customer," Tan said. "However, this year, we do not expect to see this uptick in revenue until our fourth fiscal quarter."

Tan explained that the annual "trough" normally takes place in Q2, but this year it will likely be Q3. Broadcom is not providing guidance for its fiscal Q4 yet. Apple typically unveils its new iPhones in the second half of September but is expected to be delayed by the impact of COVID-19 on supply chains. Tech geeks are already speculating that the next versions will be called iPhone 12 and iPhone 12 Pro, and will feature major updates.

Broadcom's Q3 revenue guidance is now $5.75 billion, plus or minus $150 million, and adjusted EBITDA guidance is $3.2 billion plus or minus $75 million. Reuters noted that analysts on average were expecting revenue of $5.79 billion, according to IBES data from Refinitiv.

In the quarter to May 3, Broadcom's revenue rose 4% to $5.74 billion, beating analysts' average estimate of $5.69 billion, according to Reuters. Adjusted EBITDA increased by $95 million to $3.2 billion. Tan said Q2 results were in line with the company's expectations and saw limited impact from the effects of COVID-19.

For more on this topic, see:

— Anne Morris, Contributing Editor, Light Reading

Be the first to post a comment regarding this story.
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE