Qualcomm Cannot Meet The Demand For 4G LTE Chips, Next-Generation iPhone Could Be Delayed

Apple Qualcomm iPhone 5 4SAccording to Reuters, Qualcomm, the company that supplies Apple with the 3G and LTE chips for iPhones and carrier-enabled iPads, is having “trou­ble meeting [the] demand” for 3G and 4G smartphone chips. The manufacturing shortage is said to extend to all smartphones that feature Qualcomm chips and supply constraints are expected to last throughout the rest of the year.

Yesterday, on a conference call, Qualcomm’s Chairman and CEO (Paul Jacobs) confessed the company’s struggle to meet the demand: “At this stage we can­not secure enough sup­ply to meet the increas­ing demand we are experiencing”.

One of the new iPad’s main additions was 4G LTE connectivity and with the next-generation iPhone expected to follow suit, multiple analysts are drawing the conclusion that the upcoming iPhone simply won’t be ready by this year’s World Wide Developers Conference (WWDC) in June because of Qualcomm’s inability to meet the demand.

Additionally, Qualcomm’s Chief Financial Officer (Bill Kei­t­el) informed Reuters that their manufacturing struggles have lead to a sudden and hefty investment in producing additional chips:

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.

In light of Qualcomm’s heavy load and unusual shortages, analysts’ predictions regarding Apple sticking with the fall unveiling and release put in place by the iPhone 4S’ launch is perfectly logical.

With Apple’s next-generation iPhone predicted to have a bigger impact on the smartphone industry than all previous iPhone releases, could Apple have exponentially increased the number of initial chip orders from Qualcomm?

Stay tuned for full coverage on Apple’s next-generation iPhone