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:

“Demand went so far ahead of availability that we’ve decided to start spending more money to get more supply as soon as possible… Any time we can’t make a customer totally happy I’m going to worry. You don’t want to give a customer a reason to go elsewhere.” 

Of course, there has been no shortage of rumors that we will see the iPhone 5 unveiled at WWDC in June or after.

FTC: We use income earning auto affiliate links. More.


Check out 9to5Mac on YouTube for more Apple news:

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

About the Author