Broadcom ( AVGO ) stock rocketed late Thursday after the Apple ( AAPL ) chip supplier topped Wall Street’s fiscal Q1 earnings-per-share expectations by 11 cents and issued Q2 guidance that edged analyst forecasts. Broadcom CEO Hock Tan hinted that Broadcom is already ramping for the likely September release of Apple’s iPhone 7. He acknowledged that wireless demand declined 15% sequentially in Q1 on typical seasonality haunting “our North American customer” (i.e. Apple). Tan isn’t alone. Last month, fellow Apple supplier Qorvo ( QRVO ) guided to weak Q4 sales, tugging Skyworks Solutions ( SWKS ), NXP Semiconductors ( NXPI ) and Cirrus Logic ( CRUS ) into a hole. But Tan expects Q1 to be the year’s “trough.” After-hours Thursday, Broadcom stock lifted 7% on the fiscal Q1 beat, which followed the finalized acquisition of Broadcom by the former Avago Technologies on Feb. 1. The Q1 results relate solely to the former Avago, according to the company release, as the quarter ended Jan. 31, just before the deal was finalized. Broadcom stock closed up a fraction during the regular session. Apple Seasonality Pains Ebb For fiscal Q1, Broadcom reported non-GAAP figures of $2.41 earnings per share on $1.78 billion in sales, up 15% and 8%, respectively, vs. the year-earlier quarter. Both measures topped the consensus of 30 analysts polled by Thomson Reuters for $2.30 and $1.75 billion. During Q1, wired and enterprise storage sales grew 2% and 6%, respectively, on a sequential basis. Industrial sales fell 10% sequentially, trailing the 15% decline in wireless sales, Tan told analysts on the conference call. “Last year, we had unusually high demand in Q1 from a North American customer which offset normal seasonality,” he said. “This year, however — as we all know — seasonality returned and there was a product life cycle demand decline from that specific customer.” This week IDC issued a smartphone forecast that sees iPhone shipments declining 0.1% this year as smartphones running Alphabet ‘s ( GOOGL ) Android operating system rise 7.6%. Tan said on Broadcom’s conference call that he expects weak smartphone demand to reverse in the second half of 2016. Enterprise storage comprises 38% of the former Avago’s total Q1 revenue — the largest segment and leading wireless sales which contributed 32% to the total pot. But, the wired segment is growing and during the April quarter will bring in 55% of sales, Tan said. Wired Sales To Grow The midpoint of current-quarter guidance for $3.55 billion in sales on a non-GAAP basis, plus or minus $75 million, nearly touched the consensus model for $3.57 billion. Current-quarter sales views reflect the combined Avago-Broadcom company. During Q2, wireless and enterprise storage sales will shrink as chunks of total sales to 23% and 17%, respectively, Tan said. Still, all eyes are on Broadcom’s “North American customer” which increased the chipmaker’s RF content in its upcoming flagship smartphone, he said. “We are already pre-building significant quantities of our RF chips” for the second-half of 2016 ramp, he said. “We increase our RF content by 20% year after year in this high-end smartphone market.” But Tan expects greater strength in the wired segment where Broadcom expects to add new products. The segment will also benefit from increased enterprise demand. In May 2015, the former Avago announced a $37 billion bid for fellow Apple supplier Broadcom, kicking off a record-busting year of consolidation in the semiconductor industry amid macro weakness, slowing growth and ramping costs. Post-merger, the company retained Broadcom’s name and Avago’s ticker symbol “AVGO.” Broadcom is one of two chipmakers on the IBD 50 list of top-rated growth stocks. The other is Tesla Motors ( TSLA ) partner Nvidia ( NVDA ).