Qualcomm’s 28nm Chip Shortage Won’t Affect iPhone 5 Release Date

Its supply chain might be experiencing some problems, but Apple will find a way around these issues and still launch the sixth generation iPhone in time, believes Piper Jaffray's Gene Munster.

The analyst is confident that the 28nm processor shortage reported by Qualcomm will not keep the iPhone maker from delivering a handset with a "completely redesigned body style". The new iPhone lineup is expected to be announced a year after its previous release.

Qualcomm is Apple's trusted chip supplier, with the manufacturer in the past providing base-band processors for the iPhone 4S and the new iPad. As reported last month, however, Qualcomm had issues with its LTE processors and this is one reason behind October release of the iPhone 5 to October.

Gene Munster wrote in a note to investors that there is an 80 per cent chance for Apple to still sell 49 million iPhones in the last quarter of this year. If the supply chain is affected by significant component shortages, the sales will increase in the next quarter.

"We believe it would be unlikely that a consumer would choose to buy another phone if they are unable to get an iPhone 5 due to short term supply constraints given past launches with limited supply," said Munster.

Source: AppleInsider