Broadcom Gives Better Than Expected Q4 Guidance Ahead Of 2018 Iphones

Apple supplier Broadcom is predicting a better-than-expected end to 2018 thanks to the new iPhones set to be released by Apple. As reported by Reuters, Broadcom is forecasting current-quarter revenue that’s higher than estimates…

Broadcom ultimately expects a “ramp at its North American customer,” which many analysts say is Apple, to drive a 25 percent increase in wireless revenue for Q4. In Q3 2018, Broadcom reported flat revenue.

On the other hand, Broadcom continues to report strong revenue numbers from its enterprise storage business – which was up 70 percent during Q3 2018. This, combined with a “seasonal uptick” in wireless, gives Broadcom CEO Hock Tan hope:

For the iPhone X, Broadcom supplies several parts, including the wireless charger controller, touch screen controller, and more. The company has a strong reliance on Apple as a customer, as its Q3 2018 earnings suggest. One analyst estimates Broadcom will generate $10 in revenue from every iPhone sold.

“This, coupled with a seasonal uptick in wireless, will drive our forecast revenue in the fourth quarter.”