There is a theory going around the financial markets this week.
Nowadays, markets seem to move on theory, rumors and innuendo. This story, regarding Apple, Inc. (NASDAQ:AAPL) includes a theory and a rumor – which makes it all the more juicy.
One theory as to why Apple, Inc., missed estimates on its Q2 earnings report revolves around the idea that there has been (and still is) so much anticipation for the upcoming launch of iPhone 5 that many consumers held back their spending on Apple, Inc., products until they can get their hands on the iPhone 5 in the fall. This article discusses the theory in a bit more detail.
That theory just might make sense. But what happens to Apple’s earnings if the rumor turns out to be true?
Here is the juicy rumor, that may or may not further fan the fires of excitement – or quench them with anxiety.
The rumor – it’s a rumor only at this point, because two different perspectives are being floated – comes from this story by Larry Dignan, who heard from a report in a Chinese business newspaper that the chips necessary for the iPhone 5 (called 28-nanometer chips) are in short supply and will force Apple, Inc., to delay its iPhone 5 launch – expected in October.
However, in the same story, Qualcomm Inc. (NASDAQ:QCOM) – which is the chief provider of these 28-nanometer chips – indicated that it is “ramping up” its production and supply of the chips, and this item indicates that Qualcomm was not about to sit on its hands with its usual foundry, TSMC, while it has supply problems; Qualcomm Inc. used that as a reason for its down earnings and even a loss of business from smartphone companies. Qualcomm has given indications that it is expanding its supply base beyond TSMC to some rivals in order to meet the high demand, which the company stated in its quarterfly conference call that it fully intended to do by the end of this calendar year.
Apple and Qualcomm both need the iPhone 5 to make it to market – on time. Any delay will not only adversely affect their next quarterly reports, but it could likely affect their final CY2012 numbers. Who knew a 28-nanometer chip would bring about so much chaos and concern? Or if you will … theory and rumor?
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