Qualcomm’s Q3 earnings report may indicate delays for Apple’s next 5G iPhones, with the company highlighting a “partial impact from the delay in the launch of the global flagship 5G phone” to fourth projections quarter (covering July, August and September earnings).
Looking at the upcoming phone release calendar, it’s hard to imagine that Qualcomm is talking about any device other than the upcoming 5G iPhones, which are expected to arrive this fall. Typically, Apple will release its new iPhone in September, and it’s one of the few devices to sell in large enough numbers that Qualcomm may need to reveal the material impact on a lucrative call. There are already rumors circulating about delays on Apple’s 5G line due to reduced production caused by the COVID-19 pandemic.
In an interview with Reuters, chief financial officer Akash Palkhiwala indicated that the delay is unlikely to be too long for the unnamed phone, describing it as a “small delay pushing some of the units out of the September quarter into the quarter. ‘December for us.’ (Qualcomm’s December quarter covers the months of October, November and December, so if the phone is placed in September, it may only be delayed the following month.)
Apple and Qualcomm famously made peace last year in a $ 4.5 billion deal that saw Apple regain Qualcomm’s services as a 5G modem provider for its products after years of legal battles. on patent disputes. Apple is expected to introduce Qualcomm’s 5G modems in iPhone 2020 programming as its first products to support next-generation networking technology.
Qualcomm also announced as part of its Q3 earnings that it came to a similar resolution to its patent dispute with Huawei, with the Chinese company agreeing to pay $ 1.8 billion in fee on licensing for the free technology patent. Qualcomm wires.