Ahead of iPhone 5 Debut, Rush Orders Suggests Apple Still Can’t Make Enough iPhone 4s

Ahead of iPhone 5 Debut, Rush Orders Suggests Apple Still Can’t Make Enough iPhone 4s

The chips that drive the beast.

Could Broadcom be the reason Taiwan Semiconductor Manufacturing Co. announced a boost in business from “rush orders.” Some Wall Street analysts point to the Apple supplier needing parts to meet unexpected iPhone demand. In a bit of sleuthing, experts say Broadcom’s stable revenue in an otherwise faltering economy makes the most sense.

Apple is Broadcom’s largest customer, some reports putting the iPhone maker comprising 11 percent of the fabless chip foundry. Because it is fabless, it naturally would turn to a chipmaker, such as TSMC. The theory making the rounds is that Broadcom is the only TSMC client doing well in a rocky economy. Because of this, news of TSMC’s rush orders “sticks out like a sore thumb,” analyst Richard Davenport tells Bloomberg.

However, the rush may not be about the iPhone 5, which is capturing most headlines, but the 15-month iPhone 4 that keeps selling, despite the usual sales slowdown following a new product announcement. “‘Rush orders’ are likely not from a new or unknown product, but rather imply more needed capacity with a mature product offering,” the analyst says. In other words, Apple was caught flat-footed.

Recently, Sterne Agee analyst Shaw Wu echoed Davenport’s belief. Demand for the iPhone 4 is “surprisingly robust” he told investors last week. Thinking the iPhone 4 demand would trail off once the iPhone 5 was unveiled, Apple CFO Peter Oppenheimer warned analyst at the previous financial quarter’s report that a “future product transition” would probably create lower revenue.

  • EmmaMitch557611616577

    agree…

    Heyy Guys, I just got a $829.99 iPåd2 for only $103.37 and my mom got a $1499.99 HDTV for only $251.92, they are both coming with USPS tomorrow. I would be an idiot to ever pay full retail prices at places like Walmart or Bestbuy. I sold a 37″ HDTV to my boss for $600 that I only paid $78.24 for.
    I use BÏDFiRsT. COM

  • Bunnytrifecta

    As the headline suggests, Apple can’t make enough iPhone 4s or iPhone 4S? Sorry, couldn’t help myself!

  • Chris

    would anyone ever visit a website that is advertised by spam? 

  • John Howell

    How popular the iPhone is now came to me today on the bus. Where it used to be a sea of newspapers and iPods, today I counted 5 iPhones just in the front half of the bus I was in. There may have been more that wern’t in plain sight or using other earbuds. Only one woman was reading a dead-tree book. Noone had a simple media player stuck in their ears.

  • twitter-28439603

    “but the 15-month iPhone 4 that keeps selling”

    Word sentence missing.

About the author

Ed SutherlandEd Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.

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