Supplier constraints delay iPhone 5 release until October

Macworld Australia Staff
20 April, 2012
View more articles fromthe author

Apple’s next-generation iPhone may be pushed back for an October release due to  mobile phone chip maker Qualcomm experiencing difficulties in meeting supply demands for 28-nm modem chips, set to power the next wave of LTE devices.

Qualcomm warned analysts on Wednesday that manufacturing constraints will cause  delays expected to continue throughout the year, reports Reuters.

“At this stage we cannot secure enough supply to meet the increasing demand we are experiencing,” Chief Executive Paul Jacobs told analysts on a conference call, adding that the issue would limit revenue growth this year.”

Qualcomm says that to try and meet demand and avoid further delays  it will increase its operating expenses.

“Demand went so far ahead of availability that we’ve decided to start spending more money to get more supply as soon as possible,” [Chief Financial Officer Bill Keitel] told Reuters. “Any time we can’t make a customer totally happy I’m going to worry. You don’t want to give a customer a reason to go elsewhere.”

Issues with  the supply of LTE chips have implications for the release of Apple’s new iPhone, initially tipped for a June/July release. Now analysts expect that the launch is likely to take place in October – one year on from the release of iPhone 4S.

Other reports also suggest that Qualcomm’s supply issues are a result of Apple  ordering large volumes of LTE chips, pushing the company to capacity.



Leave a Comment

Please keep your comments friendly on the topic.

Contact us