Broadcom chip shipments indicate delayed iPhone 12 launch

Manufacturer says shipment spike won't be until Q4 this year

Broadcom logo

Rumours that Apple's forthcoming iPhone 12 may be delayed beyond its usual September release window have this week been strengthened by news that silicon manufacturer Broadcom is expecting demand for its components to ramp up later than expected. 

Broadcom revealed that its annual spike in chip shipments would be coming in Q4 this year, according to reports from Reuters, as opposed to Q3 when the company usually sees shipments accelerating. Analysts generally believe that this pattern coincides with the launch of each new generation of iPhone; a delay in Broadcom's shipment patterns, therefore, is likely to mean that that the iPhone 12 is similarly delayed. 

In the past, Apple was known to release new phone models in late September. However, new estimates predict that the iPhone 12 could only be launched in the final quarter of 2020, without ruling out a delay which could drag the release date to 2021.

Last year, Apple provided around a fifth of Broadcom’s revenue, making the chip manufacturer heavily reliant on the iPhone-maker. At the beginning of the year, the two companies agreed on a $15 billion (£11.3bn) deal which entailed that Broadcom would supply Apple with wireless chips until at least mid-2023. In June, it was announced that Broadcom’s quarterly revenues were impacted by the delayed phone launch of the manufacturer’s “large North American mobile phone customer”, largely believed to be Apple.

Apart from Apple, Broadcom’s customers include notable tech companies such as Motorola, IBM, Dell, Asus, Lenovo, Linksys, Logitech, Nintendo, Nokia, and Cisco Systems.

However, manufacturers across the tech industry had been heavily impacted by the coronavirus pandemic and the restrictions imposed to curb its spread, such as factory closures or delays in transportation. 

Despite this, Broadcom forecast its fourth-quarter results above Wall Street estimates. The predicted revenue of $6.4 billion (£4.82bn), plus or minus $150 million (£112.87m), was significantly more than the average $6.14 billion anticipated by analysts, according to IBES data from Refinitiv. 

The pandemic had also kick-started a new-found demand for semiconductors, due to the sudden shift to working from home on an unprecedented scale. However, companies such as HPE and Intel were unable to meet the high demand for the components, causing declining revenues as well as PC shipments.

Featured Resources

Four cyber security essentials that your board of directors wants to know

The insights to help you deliver what they need

Download now

Data: A resource much too valuable to leave unprotected

Protect your data to protect your company

Download now

Improving cyber security for remote working

13 recommendations for security from any location

Download now

Why CEOS should care about the move to SAP S/4HANA

And how they can accelerate business value

Download now

Recommended

Apple unveils updated Mac lineup powered by its new M1 chip
Hardware

Apple unveils updated Mac lineup powered by its new M1 chip

10 Nov 2020
Apple will require developers to add privacy nutrition labels to apps
privacy

Apple will require developers to add privacy nutrition labels to apps

6 Nov 2020
Apple will replace crackling AirPods Pro for free
Hardware

Apple will replace crackling AirPods Pro for free

3 Nov 2020
Apple reportedly ramps up search engine development
iOS

Apple reportedly ramps up search engine development

29 Oct 2020

Most Popular

80% of cyber professionals say the Computer Misuse Act is working against them
Security

80% of cyber professionals say the Computer Misuse Act is working against them

20 Nov 2020
Cisco acquires container security startup Banzai Cloud
Security

Cisco acquires container security startup Banzai Cloud

18 Nov 2020
46 million Animal Jam accounts leaked after comms software breach
Security

46 million Animal Jam accounts leaked after comms software breach

13 Nov 2020