On Thursday, Broadcom forecast current-quarter revenue with a midpoint slightly below analysts’ estimates, in part caused by a delay at a “large North American mobile phone” customer that analysts believe is Apple for a product that most everyone on earth knows is iPhone.
MacDailyNews Take: Well, it sure isn’t Huawei.
The company forecast fiscal third-quarter revenue of about $5.75 billion, plus or minus $150 million. Analysts on average were expecting $5.79 billion, according to IBES data from Refinitiv.
“We would normally expect to see a double-digit sequential uplift in revenue from the ramp of next-generation phone at our large North American mobile phone customer,” Chief Executive Hock Tan said on a conference call. “However, this year, we do not expect to see this uptick in revenue until our fourth fiscal quarter.”
Tan cited a “major product cycle delay in wireless” without naming the customer, but Broadcom got about a fifth of its revenue from Apple in its most recent fiscal year and in January entered into to two multi-year agreements worth as much as $15 billion in revenue to supply Apple with wireless components.
MacDailyNews Take: Broadcom’s fourth fiscal quarter runs from the beginning of August until the end of October (very early November). So, the “iPhone delay” is minor.
In the light of recent events, a month or so is nothing. As long as Apple makes the Christmas 2020 shopping season with 5G-capable iPhones, everything will be fine. — MacDailyNews, April 27, 2020