It is difficult for a large smartphone manufacturer, such as Apple, to keep all information confidential, as some partners share it against the will of the customer. It happened this week when Broadcom representatives at the quarterly reporting conference reported a seasonal anomaly in revenue changes due to a delay in the release of new iPhones.
It is clear that neither the name of the family of smartphones nor the name of Apple sounded directly, but Broadcom does not have so many partners among large American companies of this profile. Broadcom CEO Hock Tan announced a major product cycle offset by one major North American smartphone maker. 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 company’s revenue will begin to grow, but this means that by September Apple is unlikely to have time to prepare its new iPhone.
If everything went according to plan, as Hawk Tan added, then Broadcom would face double-digit revenue growth in the current quarter. But now this moment is shifted to the fourth fiscal quarter, starting in August-September. Apple needs time to form a supply of smartphones by the start of sales, so the supply of the necessary components begins a few months before the announcement. Last year, Broadcom received one fifth of its revenue from a partnership with Apple, and in January this year it entered into a multi-year contract for the supply of components for at least $ 15 billion. The impact of this client on Broadcom’s business is significant.
The head of the company considered it necessary to add that at the level of the set of components with which Broadcom supplies this largest customer from the USA, nothing has changed, it is only a matter of shifting the delivery time. The components necessary for new smartphones to work in 5G networks will also be supplied by Broadcom. In general, the company’s management notes a decrease in demand for smartphones due to a pandemic, and there are failures in the supply chain.
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