Qualcomm chip shortage could hit iPhone 5 launch

Qualcomm has confirmed demand for its 28nm chips is outstripping supply, which analysts claim could delay the launch of the iPhone 5.

The company's 28nm Snapdragon processor is featured in devices from HTC and ASUS. It has been widely-tipped to make an appearance in the next iteration of Apple's iPhone and Microsoft's highly-anticipated Windows tablet device.

We cannot secure enough supply to meet demand.

However, with demand for tablet and smartphone devices soaring, the chip is now in short supply and is expected to remain so until the end of the year.

"Although manufacturing yields are progressing per expectation, there is a shortage of 28nm [products]," confimed Qualcomm's CEO, Paul Jacobs, during a conference call with analysts.

"At this stage, we cannot secure enough supply to meet the increasing demand we are experiencing [and] we're working closely with our partners to bring additional capacity online."

Meanwhile, Qualcomm's executive vice president, Steven Mollenkopf, said the situation has prompted some OEM partners to source alternatives.

"We have [tried] to spread the supply across all of the customers as best we can, and I think everyone is dealing with this issue," he said.

"We're really focused on getting additional supply throughout the year."

According to statement from Piper Jaffray analyst Gene Munster, published by MarketWatch, the shortage could delay the launch of the Apple iPhone 5.

"QCOM's supply issue likely pushes the launch of the iPhone to October...[which]is irrelevant, as long as the iPhone 5 upgrade is compelling," said Munster.