It is difficult for a large smartphone manufacturer such as Apple to keep all information secret, since some partners share it against the will of the customer. This happened this week, when Broadcom representatives at the quarterly reporting conference reported a seasonal anomaly in changes in revenue due to the delay in the release of new iPhones.
It is clear that neither the name of the smartphone family nor the name Apple were mentioned directly, but Broadcom does not have many partners among large American companies of this profile. Broadcom CEO Hock Tan about the shift in the cycle of an important product by one large North American smartphone manufacturer. For this reason, in the third quarter of the current fiscal year, which ends in early August, Broadcom's revenue will not increase, but will decrease, contrary to historical trends. But in the fourth quarter, the companyβs revenue will begin to grow, but this means that Apple is unlikely to have time to prepare its new iPhones by September.
If everything had gone according to plan, Hock Tan added, Broadcom would have seen double-digit percentage growth in revenue in the current quarter. But now this moment has been shifted to the fourth fiscal quarter, starting in August-September. Apple needs time to build up a stock of smartphones for the start of sales, so deliveries of the necessary components begin several months before the announcement. Last year, Broadcom received one-fifth of its revenue from cooperation with Apple, and in January of this year it entered into a multi-year contract for the supply of components worth at least $15 billion. The influence of this client on Broadcomβs business is significant.
The head of the company considered it necessary to add that nothing has changed at the level of the set of components that Broadcom supplies to this largest customer from the United States, we are only talking about a shift in delivery dates. The components needed for new smartphones to operate on 5G networks will also be supplied by Broadcom. In general, the company's management notes a decrease in demand for smartphones due to the pandemic, and there are also disruptions in the supply chain.
Source: 3dnews.ru