The highly anticipated next generation iPhone 5 is expected to launch later than planned, due to a production issue with one of the component providers for the new handset. Qualcomm, a company which produces components for LTE devices, is reportedly having issues with its 28nm modem chip.
"At this stage we cannot secure enough supply to meet the increasing demand we are experiencing," said Paul Jacobs, Chief Executive of Qualcomm.
CFO Bill Keitel reportedly told Reuters last week: "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."
According to analysts, the supply issue will push back the release date of the next generation iPhone. Gene Munster of Piper Jaffray said: "QCOM's supply issue likely pushes the launch of the iPhone to October," he added. "Based on the increased capital spending this year from TSMC and QCOM's efforts over the last quarter to port its 28nm designs to UMC and probably Global Foundries, we think QCOM will have the capacity to support a Q4 LTE iPhone 5 launch."
A recent report also suggests that the new iPhone will be designed using Liquidmetal technology which is set to rival Samsung Galaxy S3's ceramic design.