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An iPhone 12 delay looks increasingly likely

A major iPhone supplier has revealed in a call with analysts that Apple’s iPhone 12 launch could take place later than expected this year.

According to a report by Bloomberg, Broadcom CEO Hock Tan spoke about a “major product cycle delay” at a “large North American mobile phone” company (a phrase Tan often uses to describe Apple) during an earnings call with analysts earlier this week. According to Tan, the delay will lead to Broadcom experiencing an increase in wireless revenue one quarter later than usual this year.

“We are in”, said Hock in reference to Broadcom components being used in the iPhone 12. “The question is timing”.

“This year, we do not expect to see this uptick in revenue until our fourth fiscal quarter. So accordingly, we expect, our wireless revenue in Q3 will be down sequentially”.

Related: iPhone 12 rumours and leaks

This isn’t the first we’ve heard of a delay in Apple’s production line due to the ongoing Covid-19 pandemic. The WSJ reported in April that iPhone production had been pushed back a month, while Japanese news site Nikkei has stated that Apple may be considering putting the launch on hold until 2021 while demand for mobile upgrades is low.

“Supply chain constraint aside, Apple is concerned that the current situation would significantly lower consumer appetite to upgrade their phones, which could lead to a tame reception of the first 5G iPhone,” said a source (via MacRumours). “They need the first ‌5G iPhone‌ to be a hit”.

Related: Best iPhone

Right now, it is unclear whether all four rumoured devices in the iPhone 12 lineup will be delayed, or whether Apple will adopt a staggered release as it did with the iPhone XR.

Phone makers order components months ahead of product launches. According to Bloomberg, Apple would typically need to request orders in the current quarter to prepare for a September launch, but Broadcom has not received anything yet.

“Because of product cycle delays the trough for our fiscal year will be Q3. This coming quarter”, said Tan. “Nothing has changed in terms of designs, nothing has changed in terms of the content”, including 5G components.

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