Apple Inc (AAPL): New Rumor of 6-Month Device Cycle

Apple Inc (NASDAQ:AAPL) is the subject of many a rumor, with the majority (not all) end up being true, but they float around for weeks or months without a word from Cupertino until it is ready to announce something – usually just a week or two before the official launch. Based on that, it’s likely that this new rumor may not be officially confirmed until the spring, but it is one that is generating some new buzz.

Apple Inc. (NASDAQ:AAPL)

According to one of the top Apple-watching blog sites, this new rumor suggests that Apple Inc (NASDAQ:AAPL) wasn’t just adjusting its device deployment schedule to leverage the holiday season when it released its new batch of devices this fall – this step may be setting the stage for the company to release new devices every six months rather than every year. The rumor comes from a Taiwan-based China business newspaper which said in its report that supply lines for Apple (AAPL) products seem to be scheduling the production of a new iPhone, iPad and perhaps a new Apple TV – perhaps lower-prices models – sometime in the first half of 2013.

What could be the motivation, if this rumor is even close to being true? The talk is that on one hand, Apple Inc (NASDAQ:AAPL) could be looking to spread its sales more evenly through the year, and it knows that its sales number tail off three to four months after a product release and/or a couple months before an expected new release, then pick up as the new product is announced. Another reason may be that Apple Inc (AAPL) has been experiencing low yield numbers in production of its current iPhone 5 devices, and perhaps a new product launch may increase those yield numbers or increase overall margins. There are iPad owners who already have been experiencing a six-month cycle for their devices, but has it meant much for them to know their devices would be “outdated” in six months?

Do you think, if this rumor is true, that Apple Inc (NASDAQ:AAPL) can possibly continue to innovate? Would those who buy devices continually update every few months? Do you think this will enhance sales for the company, or just spread existing numbers through the year? How would you, if you were invested like billionaire fund manager David Einhorn of Greenlight Capital, approach this if it is found that the rumor has some legs? Is a more-frequent production cycle better for the company in the long run? Leave us your thoughts!

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!