Apple supplier's sales forecast suggests holiday iPhone shipments on pace to meet 2017 levels

Apple supplier Broadcom on Thursday said it expects strong seasonal sales to drive a 25 percent sequential rise in wireless revenue for the fourth quarter of 2018, echoing statements made during the lead up to last year's iPhone 8 and iPhone X launch.

Speaking with analysts in a post-earnings conference call covering the third quarter of 2018, Broadcom CEO Hock Tan said he expects a "seasonal uptick" in wireless parts orders to drive current quarter revenue forecasts, reports Broadcom.

The 25 percent boost is in large part thanks to a ramp in manufacturing at a "North American customer," believed by analysts to be Apple. Broadcom supplies a number of components used in iPhone devices, including the touchscreen and wireless charging controllers found in iPhone 8 and iPhone X.

While wireless revenue is expected to jump on a sequential basis, the forecast is down in single-digit percentage from a year ago, the report said.

Tan offered a nearly identical outlook in the second quarter of 2017, saying at the time that wireless revenues were expected to increase in the "mid-20 percent" range as Broadcom's North American customer ramped up production of its next-generation phone.

If Apple is relying on Broadcom to supply similar components for this year's iPhone lineup, today's forecast suggests Apple is expecting demand to be largely on par with that of iPhone 8 and iPhone X.

Though iPhone shipments were down on a year-over-year basis during the 2017 holiday quarter, Apple managed to sell 77.3 million units at a record average selling price of approximately $796.42. The performance netted the company its best quarter ever in terms of revenue, which hit $88.3 billion.

Apple is set to debut a refreshed iPhone lineup at a special event next week. In addition to an iPhone X successor, the company is widely rumored to launch a larger OLED variant of its popular handset, as well as a mid-tier 6.1-inch LCD model with Face ID. New Apple Watch models are also anticipated for unveiling.

AppleInsider will be covering the event live on Sept. 12.

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5 Comments

wood1208 10 Years · 2938 comments

About 6 years ago

Apple could beat 2017 number with 2 iPhones with new form factor. All three iPhones can very well help upgrade cycle for millions still using older iPhones.

nunzy 6 Years · 662 comments

Like I said before - two super cycles in a row! Go Go Apple!

cropr 11 Years · 1143 comments

Didn't Tim Cook say that we cannot draw conclusiosn from suppliers figures. I assume this is both in negative and positive direction true. It can be an indication but nothing more than tat

radarthekat 12 Years · 3904 comments

nunzy said:

Like I said before - two super cycles in a row! Go Go Apple!

Exactly. I picked up an 8+, coming from a 6, because I wanted the biggest screen I could get and the X is not as wide as the + models and therefore has less overall screen area, even though its diagonal measurement is larger. I imagine a lot of + model owners (6+, 6S+ and 7+) held off because they didn’t want to downsize. And I bet Apple knew this going in, figuring they’d let those folks hold their phones another year so they’d be ready to upgrade once an actual larger screen model, or two, are introduced. And so this could be a very big super-cycle year with the larger screen models driving upgrades. I know I’ll be looking hard at the X+ (whatever it’s name), even though I’ve had my 8+ for just eight months. I use my phone for 90% of everything computing I do, making my living on it (investing) and so it’s nothing for me to jump after such a short time to the latest. I want as large a screen as is available.

jcs2305 11 Years · 1342 comments

radarthekat said:

nunzy said:

Like I said before - two super cycles in a row! Go Go Apple!

Exactly. I picked up an 8+, coming from a 6, because I wanted the biggest screen I could get and the X is not as wide as the + models and therefore has less overall screen area, even though its diagonal measurement is larger. I imagine a lot of + model owners (6+, 6S+ and 7+) held off because they didn’t want to downsize. And I bet Apple knew this going in, figuring they’d let those folks hold their phones another year so they’d be ready to upgrade once an actual larger screen model, or two, are introduced. And so this could be a very big super-cycle year with the larger screen models driving upgrades. I know I’ll be looking hard at the X+ (whatever it’s name), even though I’ve had my 8+ for just eight months. I use my phone for 90% of everything computing I do, making my living on it (investing) and so it’s nothing for me to jump after such a short time to the latest. I want as large a screen as is available.

I wasn't aware that the iPhone X was another "Super Cycle" ? Anyway... I am in the same boat as you though with getting the 8+ instead of the X. I even waited for the X to be released so that I could hold and use the phone before pulling the trigger. I realized I couldn't go back to a smaller phone so I decided that I would grab the 8+ and wait it out for a possible plus version this year. I haven't been this excited for a new phone since the 6 Plus was released. B)

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