Qualcomm’s third-quarter earnings report could indicate a delay for Apple’s upcoming iPhone 5Gs, and the company highlights a “partial impact of the delay in launching a global 5G flagship phone” for its fourth-quarter projections (covering July, August and September earnings).
Looking at the schedule for upcoming phone releases, it’s hard to imagine Qualcomm talking about any other device than the upcoming iPhone 5G, which is expected to arrive this fall. Apple typically launches its new iPhone in September, and it’s one of the few upcoming devices that would sell in quantities large enough that Qualcomm needs to reveal the material impact on a profit call. Rumors of delays are already circulating on Apple’s 5G line due to the slowdown in production caused by the COVID-19 pandemic.
In an interview with Reuters, Chief Financial Officer Akash Palkhiwala indicated that the delay would probably not be too long for the unidentified phone, describing it as “a slight delay that pushes some of the units from the September quarter to the December quarter for us.” (Qualcomm’s December quarter covers the months of October, November, and December, so if the phone was scheduled for September, it could be delayed until the following month.)
Apple and Qualcomm made amends 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 over patent disputes. Apple is expected to introduce Qualcomm’s 5G modems in the iPhone 2020 lineup as its first products to support next-generation network technology.
Qualcomm also announced as part of its third-quarter earnings that it reached a resolution similar to its patent dispute with Huawei, and the Chinese company agreed to pay $ 1.8 billion in a license agreement for Qualcomm’s wireless technology patents.
