Due to the current situation, Most of the factories running with minimal laborers or shut down from small parts, manufacturing units to significant factories. Consumer equipment is a combination of small pieces. When a small part company delays producing the product, It will affect the Assemble company. Thus, product release may be delayed. It is what happens with the iPhone launch. iPhone 12 release delayed due to the Broadcom product cycle delay. Most of the iPhone parts are in-house productions, including Processors. But some of the elements like Display, Network cards are manufactured by other companies—Broadcom manufacturing Wi-Fi control chips for iPhone.
Who confirmed the iPhone 12 launch might be postponed due to the Broadcom product cycle delay?
When making statements company representative doesn’t reveal the names of the clients until it is necessary. Recently Broadcom CEO Hock Tan told me that there is a delay in the product cycle, and it will affect a Large North American mobile phone company. Also, he mentioned that it would affect their Q3,2020 revenue. Broadcom is the significant component supplier for the iPhone. Also, he mentioned the representatives of the company said that Broadcom could expect a significant bump in their revenue by one quarter late. Usually, iPhone launches mobiles in September. They get components from the suppliers in July. So, This statement also confirmed the details are about the iPhone 12.
What is the product cycle delay?
All of the mobile and electronic devices are assembled. They are a combination of multiple components that work together to produce as a product. When you buy a mobile, One company will make a processor; another company will make displays. Samsung is a significant OLED screen supplier for iPhone displays. The mobile company will contact them separately and assemble them in the factory, Packed and ship to the customers.
The component makers will not depend on one client. They will have a lot of clients. Components for each client may vary. So, Component manufacturers have their schedules. When they get orders from their client, they will start to produce the parts. The production will include a lot of steps like assembling machines. So, When they set up everything for some months, they have to produce for one client. They can’t make multiple products at the same time. So, If the client fails to approach the manufacturer on the correct schedule, The manufacturer will begin to produce the components for other clients. iPhone representatives didn’t make the order in Q2,2020. Thus Broadcom can’t provide the network cards for iPhone. It will cause a delay in assembling and release dates.
Apple already hinted about the weeks of delay for the iPhone 12. If Broadcom gets the order on Q3,2020 means, the launch may go to the end of Q4,2020 or Q1,2021. Google Pixel 4a is already getting delay dates. Most of the mobile start is postponed. Some of the manufacturers conduct online events. We can’t urge anyone of them in the cycle. Everything should be happening like a chain. A small delay in one sector will affect the release date.
Compare with the old days; Apple begins to hear the user voices and make products according to that. Providing ESC key in Macbook, Releasing iPhone SE2 with a $400 price range. They are doing great. I hope iPhone 12 will have three variants that should satisfy budget, regular and premium users. What are your thoughts on the upcoming iPhone 12? The current situations can affect the price of the phone? Comment below.