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Wall Street cuts Apple estimates, iPhone 5 "delay" the reason

by Kelly Hodgkins Mar 30th 2011 at 12:00PM

Analysts are responding to Apple's planned WWDC conference and the ensuing rumor that suggests Apple may delay the launch of iOS 5 and the iPhone 5 until the fall. Jim Dalrymple, of The Loop, confirmed that his report that the iPhone 5 would not be introduced at WWDC was not based on speculation, but came from reliable sources.

A protracted development schedule would be a major shift for Apple, which has produced a new iPhone model and major iOS version each summer since the original iPhone launch on June 29, 2007.

A shift in its annual summer launch schedule may cause Apple to lose its yearly summer boost in sales, an expectation that shaped the company's 2011 financial outlook. This move to a fall debut is prompting analysts to trim the company's revenue, EPS and iPhone shipment outlook for the remainder of 2011.

Jefferies analyst Peter Misek cut Apple's revenue by 4 percent, its EPS by 5 percent and its iPhone shipments by 8 percent. Other analysts may follow suit, and Apple's stock could be affected by this diminished outlook. Thus far, Apple's stock remains strong and finished on a positive note at the end of Tuesday trading.

Of course, this trend could be reversed if Apple uses this delay to put the finishing touches on an improved version of iOS and to fine tune those rumored cutting-edge cloud services.



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Analysts are responding to Apple's planned WWDC conference and the ensuing rumor that suggests Apple may delay the launch of iOS 5 and...
 

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luckylucy

How does Wall Street come up with their information before the fact ...Osmosis?

March 30 2011 at 4:19 PM Report abuse rate up rate down Reply
Steve

I love how everyone assumes that not announcing the iPhone 5 at WWDC means it will be delayed until fall. Has anyone considered that they might just want to announce the iPhone 5 at a separate event before or after WWDC? This would give them more time to focus on the features, and would also make the WWDC keynote less about the hardware and more about the software, which seems to be their focus.

It's entirely possible that it won't come out until fall, but nothing I have seen so far is indicating this is true.

March 30 2011 at 4:05 PM Report abuse rate up rate down Reply
jbelkin

Ah, more wishful thinking from competitor client bankers or those who are shorting the stock - that ipad delayed really paid off for Apple's competitors, oh wait, it came out EVEN EARLIER. Why not roll all the dice, maybe the summer Q will be the one in which Nokia-MS gets 99.9% share of the smartphone featuring Clippy speaking Finnish. Or maybe the complete opposite - Apple will release a hologram butler iphone and an ipad that doubles as a hoverboard - another $100 billion in sales? I can make up stuff too!

March 30 2011 at 4:04 PM Report abuse rate up rate down Reply
SleeplessKn1ght

This is why oil prices go up...

March 30 2011 at 2:53 PM Report abuse rate up rate down Reply
kilcher

All of these articles on the supposed delay and none mention a reason. This one in the very title promises to give us a reason. Where is it? All I see is more analyst speculation.

March 30 2011 at 2:02 PM Report abuse rate up rate down Reply
6wkxg6y3hp

Greed much, Wallstreet?

March 30 2011 at 1:48 PM Report abuse rate up rate down Reply
Michael@reinhartstudios.com

Wall Street, FYI, Apple has more products than the iPhone.

March 30 2011 at 1:07 PM Report abuse rate up rate down Reply
1 reply to Michael@reinhartstudios.com's comment
rvinny

Exactly, and wasn't it another article just posted that raised sale estimates of iPad2 by another 20 million?

Where can I get paid to just make stuff up and put it out there as gospel?

March 30 2011 at 2:32 PM Report abuse rate up rate down Reply
IcyFog

There can't be an iPhone delay if Apple hasn't even set a release date yet.

March 30 2011 at 12:40 PM Report abuse rate up rate down Reply
1 reply to IcyFog's comment
Alexander

Right, if they planned to wait longer because they're introducing iOS 5 first along with lion, then everything is according to plan. Also, there hasn't been a real revamp of computer hardware in awhile...new designs are due and revenue would still increase. Shows how much the stock market really follows actual business.

March 30 2011 at 1:04 PM Report abuse rate up rate down Reply
Wdc

Did they forget to factor in sales of lion OSX?

March 30 2011 at 12:32 PM Report abuse rate up rate down Reply
jbilgihan

I meant "sell" instead of see.

March 30 2011 at 12:29 PM Report abuse rate up rate down Reply
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