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Avago ramp-up may indicate next-gen iPhone going into production

updated 09:56 am EDT, Thu May 30, 2013

Supplier hints at 'product transition at a large smartphone OEM'

A forecast from chipmaker Avago Technologies may point to production of a next-generation iPhone getting underway, Reuters suggests. The company is predicting a sequential revenue increase of 6 to 9 percent for the current quarter, based on "the initial ramp of a product transition at a large smartphone OEM, a recovery in enterprise networking spending, as well as a continued, gradual uptick in industrial end market demand," according to CEO Hock Tan. While the OEM isn't named, Apple is already an Avago customer, and the news would be consistent with ongoing rumors.

Production of one or more new iPhones is commonly expected to start in June or July, ahead of a launch in September. Although that would give Apple an enormous lead time, the company may need it to satisfy an increasingly large number of carriers and retailers, especially if rumors about a second, low-cost iPhone model prove true.

Avago's sales sagged during the previous two quarters, something Reuters hints may have been linked to Apple reducing orders from suppliers around the same time. Although the iPhone 5 has sold well, it may not be doing as well as was originally expected. Some critics have suggested that the issue is the relative stagnation of iPhone features next to advances being made by Android phone makers.



By Electronista Staff
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