Apple supplier Broadcom expects huge sales boost in advance of iPhone 7

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By Larry Banks

Wireless chip company Broadcom is expecting a boost to this quarter’s revenues of 20 percent as the firm prepares for the next of Apple’s iPhone models, the CEO revealed last week.

“It’s largely the certain North American company that’s driving the bulk of the growth”, said Hock Tan in a conference call. “It’s the beginning of the ramp for their next-generation phone”.

Broadcom’s wireless revenue is largely expected to rise in the mid 20 percent range by the quarter ending on July 31st, Tan said. Apple’s main manufacturing partner, Foxconn, accounts for more than 10 percent of Broadcom sales.

RELATED: After merging with Avago, Broadcom to axe 1,900 jobs.

The expected increase pretty much confirms Apple will launch new iPhones in September, calling suppliers to deliver relevant parts in time for their assembly. It may also suggest the firm anticipates normal levels of demand at least for the initial launch.

Reports suggest that the base level iPhone 7 will be a minor upgrade, although besides the usual CPU and camera improvements, it may also ditch the 3.5mm headphone jack, as well as gain optical image stabilisation and offer an option for 256 GB of RAM. The default level of storage may also rise to 32 GB, as most modern phones use 32 GB as the default.

The “Plus” model may include a dual lens camera and the smart connector that the iPad Pro uses, helping to distinguish the phone from the regular model besides simply having a larger 5.5-inch screen. The new camera is also thought to require 3 GB of RAM, rather than the usual 2 GB.


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