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

Next-generation time series: Forecasting for the real world, not the ideal world

Solve time series problems with AI

Free download

The future of productivity

Driving your business forward with Microsoft Office 365

Free download

How to plan for endpoint security against ever-evolving cyber threats

Safeguard your devices, data, and reputation

Free download

A quantitative comparison of UPS monitoring and servicing approaches across edge environments

Effective UPS fleet management

Free download

Recommended

IT Pro News in Review: MacBook refresh, Facebook creating jobs and facial recognition in schools
Hardware

IT Pro News in Review: MacBook refresh, Facebook creating jobs and facial recognition in schools

22 Oct 2021
Apple unveils redesigned MacBook Pro with M1 Pro, M1 Max chips
Laptops

Apple unveils redesigned MacBook Pro with M1 Pro, M1 Max chips

18 Oct 2021
Apple reportedly slashes iPhone 13 production due to chip crisis
components

Apple reportedly slashes iPhone 13 production due to chip crisis

13 Oct 2021
Apple expected to unveil MacBook Pro revamp at 18 October event
Laptops

Apple expected to unveil MacBook Pro revamp at 18 October event

13 Oct 2021

Most Popular

Best Linux distros 2021
operating systems

Best Linux distros 2021

11 Oct 2021
Apple MacBook Pro 15in vs Dell XPS 15: Clash of the titans
Laptops

Apple MacBook Pro 15in vs Dell XPS 15: Clash of the titans

11 Oct 2021
Royal Mint to recover gold from smartphones and laptops in world first
Technology

Royal Mint to recover gold from smartphones and laptops in world first

21 Oct 2021