Apple Inc. (AAPL): Which iPhone 5S Rumor Should You Believe?

Page 1 of 2

Investors are now just a couple of months away from Apple Inc. (NASDAQ:AAPL)‘s presumed “iPhone 5S” September launch, which means that the chorus of rumors has reached a deafening crescendo. There are two somewhat conflicting rumors right now as to what the iPhone 5S launch will look like.

A tale of two Taiwanese publications
DIGITIMES is saying that the iPhone 5S may see some early supply constraints due to low yields for the fingerprint-recognition chips and LCD components. Low yields have supposedly pushed back commercial production of those key ingredients into later this month, whereas they should have begun in late June to early July to meet Apple Inc. (NASDAQ:AAPL)’s September schedule. Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) is producing the fingerprint-recognition chips.

Apple Inc. (AAPL) to be Added to Several WisdomTree ETFsThe Taiwanese publication’s anonymous tipsters say that 3 million units will have to be delayed into the fourth quarter, which isn’t necessarily too long since that would just mean pushing back a month into October. Total iPhone shipments, including all models, are estimated at 30 million units. That last figure may seem low compared to the nearly 50 million iPhones sold last holiday quarter, but remember that it’s just one questionable data point that doesn’t give much insight into Apple Inc. (NASDAQ:AAPL)’s global supply chain or address things like starting inventory positions or third-party channel inventory.

On a separate note, Bloomberg is relaying a report from a different Taiwanese publication, the Commercial Times, saying that Apple Inc. (NASDAQ:AAPL) may delay the introduction of the iPhone 5S altogether and the device might not be released until closer to the end of the year. A mid-range model is still on track for a third-quarter launch, according to the report. Most importantly, the Commercial Times alleges that the reason that the iPhone 5S is being pushed back is a last-minute decision to increase the display size to 4.3 inches.

One of these is not like the other
DIGITIMES may not exactly have the best track record with speculative rumblings, but its report is more likely to be accurate. There have been other reports that the iPhone 5S is ramping up production later this month, such as a research note from Jefferies analyst Peter Misek.

Apple Inc. (NASDAQ:AAPL) has faced component shortages before and still launched new iPhones, albeit with some supply constraints. Last year’s iPhone 5 was plagued with early constraints related to low yields on the in-cell touch displays as well as high quality standards for the aluminum chassis. Tim Cook acknowledged these constraints on the conference call, so it’s entirely feasible for Apple to launch a new model even if supply isn’t ideal. It’s better than delaying the launch altogether.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!