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Will iPhone 8 Launch Delay Cost Apple (AAPL) a Fortune?
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Apple Inc. (AAPL - Free Report) is rumored to delay the launch of its highly anticipated iPhone 8 according to Digitimes, which quoted a Chinese-language report from Economic Daily News (EDN). Per EDN “technical issues related to the lamination process of curved OLED panels and the adoption of a 3D sensing system” may be the reason behind the delay.
Apple usually launches new iPhone in the month of September, which enables the company target the holiday season business. Hence, a delay to October/November can have serious repercussions on Apple’s shipment ability during the busy season. This will eventually hurt its market share, top-line growth and share price momentum. (Read More: Apple Roundup: iPhone Still Drives Apple Shares)
According to latest Gartner data, Apple surpassed Samsung to become the #1 global smartphone vendor in fourth-quarter 2016, primarily driven by robust sales of iPhone 7 and 7s, which were launched in Sep 2016. (Read More: Apple Becomes Highest Smartphone Seller after 8 Quarters)
We note that since the launch of iPhone 7 on Sep 16, Apple stock has returned 25.3% as compared with S&P 500’s gain of 9.8%.
iPhone: Apple’s Key Catalyst
Apple is hugely dependent on iPhone for reporting top-line growth. In the last quarter total unit sales increased 5% year over year to 78.3 million. The device contributed more than 69% of Apple’s total revenue and revenues grew 5% from the year-ago quarter. Moreover, total revenue increased 3.3% to $78.4 billion, which easily topped the Zacks Consensus Estimate of $76.9 billion.
We note that the expectations regarding the upcoming iPhone 8 (or iPhone X) are humongous, as it will mark the tenth anniversary of the first iPhone. Apple is anticipated to make a big innovation leap with this new edition phone, with rumored features like a glass body, a dual curved edge-to-edge OLED display with a built-in Touch ID sensor, wireless charging (USB-C) and higher storage options.
Reportedly, iPhone 8 will be the first iPhone to support AMOLED (active matrix organic light-emitting diode) display. Per reports the company has ordered nearly 70 million OLED screens from Samsung Electronics. Moreover, it is rumored that the premium model of iPhone 8 will be priced at more than $1,000. (Read More: Apple Reportedly Orders 70M OLED Screens from Samsung)
Long-term growth rates for Alphabet, 3D Systems and Adobe are currently pegged at 16.25%, 17% and 18%, respectively.
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Will iPhone 8 Launch Delay Cost Apple (AAPL) a Fortune?
Apple Inc. (AAPL - Free Report) is rumored to delay the launch of its highly anticipated iPhone 8 according to Digitimes, which quoted a Chinese-language report from Economic Daily News (EDN). Per EDN “technical issues related to the lamination process of curved OLED panels and the adoption of a 3D sensing system” may be the reason behind the delay.
Apple usually launches new iPhone in the month of September, which enables the company target the holiday season business. Hence, a delay to October/November can have serious repercussions on Apple’s shipment ability during the busy season. This will eventually hurt its market share, top-line growth and share price momentum. (Read More: Apple Roundup: iPhone Still Drives Apple Shares)
According to latest Gartner data, Apple surpassed Samsung to become the #1 global smartphone vendor in fourth-quarter 2016, primarily driven by robust sales of iPhone 7 and 7s, which were launched in Sep 2016. (Read More: Apple Becomes Highest Smartphone Seller after 8 Quarters)
We note that since the launch of iPhone 7 on Sep 16, Apple stock has returned 25.3% as compared with S&P 500’s gain of 9.8%.
iPhone: Apple’s Key Catalyst
Apple is hugely dependent on iPhone for reporting top-line growth. In the last quarter total unit sales increased 5% year over year to 78.3 million. The device contributed more than 69% of Apple’s total revenue and revenues grew 5% from the year-ago quarter. Moreover, total revenue increased 3.3% to $78.4 billion, which easily topped the Zacks Consensus Estimate of $76.9 billion.
Apple Inc. Revenue (TTM)
Apple Inc. Revenue (TTM) | Apple Inc. Quote
We note that the expectations regarding the upcoming iPhone 8 (or iPhone X) are humongous, as it will mark the tenth anniversary of the first iPhone. Apple is anticipated to make a big innovation leap with this new edition phone, with rumored features like a glass body, a dual curved edge-to-edge OLED display with a built-in Touch ID sensor, wireless charging (USB-C) and higher storage options.
Reportedly, iPhone 8 will be the first iPhone to support AMOLED (active matrix organic light-emitting diode) display. Per reports the company has ordered nearly 70 million OLED screens from Samsung Electronics. Moreover, it is rumored that the premium model of iPhone 8 will be priced at more than $1,000. (Read More: Apple Reportedly Orders 70M OLED Screens from Samsung)
Zacks Rank & Key Picks
Currently, Apple carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader market are Alphabet (GOOGL - Free Report) , 3D Systems (DDD - Free Report) and Adobe Systems (ADBE - Free Report) , all three carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term growth rates for Alphabet, 3D Systems and Adobe are currently pegged at 16.25%, 17% and 18%, respectively.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>