Qualcomm and Broadcom are the latest Apple suppliers to spell earnings gloom

Qualcomm and Broadcom are the latest Apple suppliers to spell earnings gloom
Buried inside the latest earnings reports of Qualcomm, Broadcom, and other big Apple suppliers, lies yet another tangential evidence that Apple's Q1 forecast may be lower than analysts initially expected. Qualcomm, which is in a patent feud with Apple over breaking the exclusivity agreement for wireless modem supplies prematurely, mentioned in its earnings report that sales for a big "thin modem" client will be worse than usual, even counting seasonality factors for the January-March period.

That big modem customer is more than likely Apple, as the iPhones for Verizon and Sprint are still equipped with Qualcomm's X16 LTE modem, albeit in a neutered form to bring it on par with the Intel modems in GSM carrier iPhones. Broadcom, on the other hand, which supplies Apple with Bluetooth and other connectivity chips, reported that it expects "greater-than-seasonal decline in wireless," piling on the rumors that the iPhone X orders may have been cut below expectations

A smaller supplier, Qorvo, missed analysts' sales estimates widely, and it derives 40% of its revenue from Apple. Where there is smoke, there is fire, and Apple's earnings release happens to be today, so we'll keep you updated if all that analysts and suppliers doom and gloom actually materializes in the Q1 iPhones forecast.

source: Bloomberg

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iPhone X
  • Display 5.8" 1125 x 2436 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A11 Bionic, Hexa-core, 2390 MHz
  • Storage 256 GB
  • Battery 2716 mAh(21h 3G talk time)

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11 Comments

2. ReticentHamster

Posts: 156; Member since: Jan 19, 2015

Oh boy, this should be exciting... This isn't the first time that we've seen the whole "Apple's earning declined! Oohhh myyyy Goooood, they're doomed!" Kind of thing, and i believe Apple will be just fine. That said, it could be that the $1000 starting price was more prohibitive than expected. From what I understand, the X still sold well, it just didn't shatter records. Maybe its more of a Galaxy Note kind of device that appeals to a slightly narrower audience? Whatever the case, these are exciting times in the mobile world, and i'm eager to see how this develops.

4. kartik.07

Posts: 73; Member since: May 04, 2015

Do you know last times when there were reports of bad earning (according to apple earning which would still be good for other manufacturers) there next iphone earning skyrocketed to say the least for example iphone 6

8. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Right, I mean it was like magic. It was as if they starved their iFans of decent features and then released a product that the iFans had been secretly wanted for years despite berating that same product when other manufacturers released it (I am talking about bigger screens obviously, but iFans aren't that quick so have to spell it out). If their earnings decline now, they decline from here onwards because no one has anything interesting so no one left for Apple to copy. They need to make sure they keep up the facade of invincibility or this all comes down. This has been a terrible year for Apple fans in general. Apple is still making money hand over fist, but Apple fans have gotten two dysfunctional OSes (iOS 11 and high sierra), the worst Macbook pros so far, the most expensive iPhone which has its defining feature as something everyone else already had (tall OLED screen), and lets not forget the whole throttling fiasco.

9. makatijules

Posts: 835; Member since: Dec 11, 2017

The iPhone 6 sold high because Apple finally made a big phone. But notice the year with the 6S and 7 and 8 are all lower in sales compared to the iPhone 6. The iPhone 6 sold 220M between 2 years of sales with both the 6 and 6S. The 7 and 8 combined don;t even come close.

3. Crispin_Gatieza

Posts: 3157; Member since: Jan 23, 2014

Could it be that smartphones have reached the point of diminishing returns? There are really no new features to speak of and people are hanging on to their phones longer than before. Add to that the fact that today's mid-range phones far exceed flagships of just a few years ago.

5. cncrim

Posts: 1588; Member since: Aug 15, 2011

Yes Smartphone has hit it peak 2014. Anyone hold smartphone from 2014 then they haven't miss out anything much.

6. darkkjedii

Posts: 31328; Member since: Feb 05, 2011

Apple needs to drastically shake it up. New UI look. True multitasking among other things are needed.

10. c.m.s

Posts: 239; Member since: Dec 10, 2017

Stop saying ”True multitasking”. Read up on what that means in software development, iOS is a ”true multitasking” OS. If you mean things like multi window with apps running side by side I don’t agree, I don’t need that at all on a small phone (on iPad its a different thing). The switch gesture is so fast and simple, don’t need small cluttered app windows.

12. Marcwand3l

Posts: 446; Member since: May 08, 2017

I don't see why he should stop calling thing how they really are. And yes iphones lack true multitasking.

13. darkkjedii

Posts: 31328; Member since: Feb 05, 2011

Notice, I didn't even bother responding to him.

7. Rigmaster

Posts: 234; Member since: Jan 22, 2018

Here's the clash - iPhoneX simply isn't worth the premium pricing. What are the gotta-haves on the iPX that are worth the premium? Glass/design - breaks or is too easy to blemish. iOS - largely the same - where it's different isn't better and in some ways worse (gestures aren't better or more functional). Features - the camera is better, but that's really about it since everything else isn't something people pay a premium for rather than expecting it to be better with each new phone at no or little cost. Lack of true multi-tasking seems to be a known omission. Worry about it's battery impact? Should be compatible with and come with a pen and wireless headphones, but that would add another $200+. Apple's earnings will be fine since this is all really about being able to generate the same amount of revenue and profit with less production. If there's one thing Apple's pointing towards, it's that less than record sales is very likely to be the fate of all phonemakers. Just like PC/laptop makers saw the same stall, there's a point at which most are willing to hang on to "good enough" until it won't work. The parts suppliers are in for some turbulent times. That's the real story.

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