Apple LTE chip supplier Qualcomm unable to meet demand, could push back next iPhone launch

Jordan Kahn

According to a report from Reuters, Apple’s LTE chip supplier Qualcomm is having “trouble meeting demand” for smartphone chips and will continue experiencing manufacturing constraints throughout the rest of the year. Qualcomm Chief Executive Paul Jacobs told analysts on a conference call yesterday, “At this stage we cannot secure enough supply to meet the increasing demand we are experiencing.”

With Apple’s next-generation iPhone expected to include LTE capabilities like the recently launched third-gen iPad, many are speculating Qualcomm’s supply issues could lead to delays. It would also make the rumored September or October unveiling and holiday launch all the more likely opposed to June. Is it possible Qualcomm’s supply constraints have anything to do with Apple buying up its capacity?

Apple recently began internally seeding prototype N96— a faster iPhone with 1GB of RAM and an A5X variant to test the performance of the new chip on iPhones.

Qualcomm’s Chief Financial Officer Bill Keitel told Reuters the constraints have lead to increased operating expenses: Read more

$1,000 Apple analyst shares what he learned in Asia on the next iPhone

Jordan Kahn

We reported this morning that Apple has now begun internally seeding a prototype next-gen iPhone with the A5X chip that debuted in the new iPad and 1GB of RAM. Based on his recent trips to China and Taiwan, Topeka Capital Market analyst Brian White, who has Apple’s price target at $1,001 as of this morning, shared some new details of what he described as “the buzz around the new iPhone 5.” According to White (via Barron’s), he expects a “sleek” new iPhone to launch in the December quarter. He also expects the device to sport a new 4-inch display and include 4G LTE capabilities.

White set his price target based on an expected August or September unveiling of the product. He also claimed the launch “could be extraordinary” by dwarfing previous launches and driving the stock closer to our $1,001 price target.” According to the report, Apple is expected to start component production for the “iPhone 5″ in June.

White also claimed sales of the new iPad could have been higher if not for a production issue with panel makers related to the new Retina display. Last month, Apple announced its “strongest iPad launch yet” with sales of three million new iPads on its debut weekend…
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Following closely behind Australia: Denmark, Sweden and UK’s advertising authorities looks at iPad ’4G’ marketing claim

Jordan Kahn

Yesterday, we reported that the Australian Competition and Consumer Commission wants Apple to lose the “4G” marketing for the third-generation iPad, alleging it misleads consumers into thinking the device is capable of accessing 4G networks in Australia. Reports from ABC news quickly followed and claimed Apple would give refunds to customers and publish clarification regarding incompatibility with the Telstra network. Apple’s AU website now has “Ultrafast wireless” instead of “Ultrafast 4G” on the main features page, despite still advertising 4G as a highlight of the device through its international sales pages.

Now, authorities in other countries where the new iPad is not compatible with local 4G networks are investigating the issue. Authorities in at least the United Kingdom and Sweden confirmed they are considering investigations…
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iOS 5.1 code shows iPhone LTE call and FaceTime switching?

Jordan Kahn

With the introduction of a new LTE iPad, there is no shortage of rumors about a 4G iPhone not being far behind. We saw LTE in iOS code strings before the new Pad was introduced, but it was only speculation whether those were for iPhone, the new 4G iPad, or both.

Today, code strings in iOS 5.1 discovered by Cydia developer Krishna Sagar contain the text: “Enabling 4G will end your phone call. Are you sure you want to enable 4G?” It also has various other mentions of enabling and disabling 4G when on phone calls and FaceTime. While most of the references to 4G in the strings could be for the iPad, references to calling features is pretty solid evidence that Apple is at the very least testing a LTE iPhone.

AT&T recently began calling its HSPA+ service 4G on iPhone 4S, but switching that on and off would not disable a phone call or a FaceTime chat.

There is also a full reference to FaceTime over 4G in the code strings (below):

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New iPad Wi-Fi issues seem to be software related, should be easy to patch

Jordan Kahn

We mentioned earlier that some new iPad owners were reporting issues with Wi-Fi. The problem seems to affect all models of the new device with both users of the 4G LTE model and the Wi-Fi-only model experiencing poor Wi-Fi reception. Many forum posters compared Wi-Fi reception with their other iOS devices and MacBooks on the same network:

“My iPad 3rd generation has much worse range than my iPad 1. Two places I use it most My Driveway, and “down the hall at work” iPad 1 (iPhone 4s, and Macbook) all have solid connections. New iPad nothing. not a thing.”

One user reports only receiving good reception within six feet of a router while another claims to have had issues with four different third-generation iPads. The good news is that the fix is likely software related, as many in the forums pointed to temporary fixes like rebooting the device or toggling Wi-Fi on and off. OS X Daily confirmed resetting Wi-Fi and network settings seems to fix the issue for some and provided instructions. In 2010, the first generation iPad had Wi-Fi connectivity issues for some users and Apple eventually issued a software update to fix the problem, which is detailed in this support document. According to Apple, only “a very small number of iPad users” experienced the issue and that seems to be the case with the new iPad as well.

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New iPad users blowing by their monthly plan in hours thanks to LTE

Jordan Kahn

While it is no secret that LTE devices are capable of burning through data quicker than their 3G counterparts burn, several reports claim many new iPad users are concerned about how quickly they are reaching their data cap. In some cases, users reported reaching their 2GB monthly cap within hours of just streaming video. According to a new report from The Wall Street Journalthatprofiled several disgruntled AT&T and Verizon customers, Apple’s “promise of superfast wireless connections collides with the reality of what those services cost.”

Doing some math that any consumer could: LTE speeds often hit 2 Megabytes/second. You would hit 2GB in 1000 seconds—or under 17 minutes.

One man profiled in the story, Brandon Wells, went through 2GB of his Verizon plan streaming March Madness college basketball games to his new iPad. WSJreports:

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