Qualcomm Suggests Launch of 5G iPhone 12 Models Could Be Slightly Delayed Past September

[MacRumors]

Qualcomm today shared its third quarter earnings report and hinted that Apple's upcoming 5G iPhones could be delayed, according to Reuters. Qualcomm said its fourth quarter projections might be impacted by the "delay of a global 5G flagship phone launch."

From Qualcomm CFO Akash Palkhiwala, who referred to the delay as "slight":

"We're seeing a partial impact from the delay of a flagship phone launch. And so what we've seen is a slight delay that pushes some of the units out from the September quarter to the December quarter for us."

The fourth quarter covers July, August, and September, and September is typically the month when Apple launches new smartphones. Given the release timelines of other smartphones and Apple's size, it's unlikely that Qualcomm is referring to a different smartphone launch, even though Qualcomm declined to name Apple or the iPhone.

Apple is using Qualcomm's 5G chips in its iPhone 12 lineup, and all models are expected to support 5G technology. There have been multiple rumors indicating Apple's iPhone launch will be delayed this year due to the ongoing global health crisis and restrictions on travel.

So far, rumors have indicated that iPhones could be delayed by about a month, which suggests a launch in October rather than September. It's not clear if all iPhones will be delayed, or if some models will come out in September while others launch in October or later.

Apple is still likely to unveil the new iPhones in September as it usually does, launching the devices later in the year. There is precedent for a launch that's uncoupled from an announcement. In 2018, Apple debuted the iPhone XS, XS Max, and XR, with the two more expensive iPhones launching in September and the XR coming later in October.

We're expecting a total of four iPhones in 5.4, 6.1, and 6.7-inch sizes in 2020, with more details available in our iPhone 12 roundup.

Article Link: Qualcomm Suggests Launch of 5G iPhone 12 Models Could Be Slightly Delayed Past September

 

[Saturnine]

If Apple launches the iPhone 12 in October/November as expected, I’m surprised it has a knock-on effect on Qualcomm’s quarterly earnings.

I would have expected the component parts to have been purchased months in advance but what do I know about global multi-billion dollar contracts?

 

[JPack]

This confirmation is about as solid as it gets.

 

[lsutigerfan1976]

Fellas. That 6.1 inch model is mine. Called it first. 😂

 

[Apple_Robert]

if there is a slight delay, that won’t bother me at all. Life moves forward. No need to get anxious or mad about something that isn’t in our control. In the grand scheme of things, getting a new phone 12 is pretty meaningless.

 

[Lazy]

If Apple launches the iPhone 12 in October/November as expected, I’m surprised it has a knock-on effect on Qualcomm’s quarterly earnings.

I would have expected the component parts to have been purchased months in advance but what do I know about global multi-billion dollar contracts?

Parts are contracted for months in advance but not paid for until delivery.

 

[Apple_Robert]

Fellas. That 6.1 inch model is mine. Called it first. 😂

I believe you need at last 10K posts, in order to call “dibs.”

 

[zorinlynx]

I'm so glad I got an iPhone 11 Pro Max last year and that I don't have to think about a new phone for a while.

11 Pro Max is mind-blowingly fast and will probably be good for 2-3 years at the least.

 

[JPack]

I would have expected the component parts to have been purchased months in advance but what do I know about global multi-billion dollar contracts?

Components are ordered in advance, but payment is based on actual number of units delivered and other contract terms. In short, payment comes after delivery.

And Qualcomm would not be stocking up on modems in advance. If they find a bug that needs a new stepping, all those wafers will have gone to waste.

 

[Daniel L]

I hope this also means Apple will be sourcing the X60 modem rather than X55

 

[TheYayAreaLiving 🎗️]

This confirmation is about as solid as it gets.

Delayed by how many months???

 

[quamsi]

if there is a slight delay, that won’t bother me at all. Life moves forward. No need to get anxious or mad about something that isn’t in our control. In the grand scheme of things, getting a new phone 12 is pretty meaningless.

unless you’re like me gimping along on a glitchy, slow, sick-battery device hoping against hopes it survives long enough to get you to the launch.

 

[TheYayAreaLiving 🎗️]

So, there's a chance iphones are being released in the month of October???

 

[smulji]

Delayed by how many months???

https://twitter.com/x/status/1288591038098083840

 

[JPack]

I hope this also means Apple will be sourcing the X60 modem rather than X55

There is zero chance X60 is happening. Or else the Qualcomm CFO would have proudly announced they were pulling in the X60 schedule to 2020 instead of 2021 as previously publicized.

 

[Apple_Robert]

unless you’re like me gimping along on a glitchy, slow, sick-battery device hoping against hopes it survives long enough to get you to the launch.

You can always buy an iPhone 11, SE, or one of the other iPhone models. You are gimping along right now because you want to gimp along to try and make it to iPhone 12. I wouldn’t call that a serious situation.
[automerge]1596064498[/automerge]

So, there's a chance iphones are being released in the month of October???

If true, we are talking about 3 maybe 4 weeks from the usual release. Not a big deal.

 

[TheYayAreaLiving 🎗️]

Well, looks like we’re gonna be waiting till October Folks!

 

[iFan]

Even if this new phone launches late October, production likely began in July. Qualcomm probably started shipping chips in June/July. Still confused how this impacts their September quarter guidance, unless they don’t get paid until up to 90 days after? Or unless quantities are just too small until October?

 

[TheYayAreaLiving 🎗️]

we have so many conflicting rumors it makes no sense!

I thought production already started in the month of July as usual... No idea what's happening!

 

[Dwalls90]

If Apple launches the iPhone 12 in October/November as expected, I’m surprised it has a knock-on effect on Qualcomm’s quarterly earnings.

I would have expected the component parts to have been purchased months in advance but what do I know about global multi-billion dollar contracts?

Given the materiality of the contract, from a financial reporting perspective, the period over which income is recognized is being shifted backwards in time. They don't just receive say $50M (making up this number) in September or October and record it the same way, but rather likely evenly over time as they deliver their product to Apple for iPhone production.

 

[smulji]

we have so many conflicting rumors it makes no sense!

I thought production already started in the month of July as usual... No idea what's happening!

Due to obvious reasons, production is behind, hence the October launch.

 

[Momof2.1107]

I really was hoping the iPhones would be released in September this year, but I have no choice but to wait until Apple releases them. In the meantime I’ll just have to keep using my XS Max and hope I don’t get as many dropped calls.

 

[19callum93]

Anyone know where I can purchase one of these dummy units. Can’t see to find them.

 

[Kaylor]

unless you’re like me gimping along on a glitchy, slow, sick-battery device hoping against hopes it survives long enough to get you to the launch.

I‘m in the same boat. Almost bought an 11 but decided my 6s could limp along until the next release cycle. The battery (which I’ve already had replaced once) is making it really difficult.

 

[HarryWild]

Want 5.4” iPhone 12 Pro! Not an economy iPhone 12! Errrrrrrrrr!