Qualcomm’s earnings report for the third quarter may suggest a setback for Apple’s upcoming 5G iPhones. This is because Qualcomm highlights its fourth-quarter estimates (which cover the numbers in July, August, and September) to have a “partial effect from the pause of a global 5G flagship phone launch.”
The American multinational company creates an intellectual property, software, service related to wireless technology and semiconductors.
Qualcomm doesn’t seem to be talking about any device other than the upcoming 5G iPhones that are set to arrive soon, according to the upcoming phone release calendar.
Also, it is in September that Apple usually launches its latest iPhones. Moreover, it is also one of the few anticipated devices that will sell in significant enough quantities that Qualcomm will need to announce the material effect on an earnings call.
Rumors of delays for Apple’s 5G lineup have been circulating for some time, since its production has slowed because of the COVID-19 pandemic.
In an earlier interview, Qualcomm’s Chief Financial Officer Akash Palkhiwala stated that the delay would probably not be too long for the undisclosed smartphone, describing it as “a slight delay that pushes some of the units out from September to December.”
After years of court battles over patent disputes, Apple and Qualcomm reached peace last year in a $4.5 billion deal that saw Apple reclaim the services of Qualcomm as a 5 G modem provider for its devices. To support the next-generation networking platform in the 2020 iPhone lineup, Apple is expected to launch Qualcomm’s 5G modems.
In its Q3 report, Qualcomm also revealed that it has reached a similar resolution to its patent dispute with Huawei. Huawei has agreed to pay $1.8 billion in a settlement regarding licenses for Qualcomm’s wireless technology patents.