Traders are keeping a close eye on Apple Inc. (NASDAQ:AAPL) after the DigiTimes reported the following, ‘There are signs indicating that Apple may delay the launch of its next-generation iPhone to October or even November, instead of September as usual, according to a Chinese-language Economic Daily News (EDN) report. Technical issues related to the lamination process of curved OLED panels, and the adoption of a 3D sensing system may cause the delay of the new iPhone devices, said the paper’.
Given that the lion’s share of Apple Inc. (NASDAQ:AAPL)’s profits depend on the iPhone and much of this year’s rally has been in part due to the anticipation of strong upcoming new iPhone sales, the DigiTimes story, if true, could dampen sentiment at least momentarily. With that being the case, Apple might be able to overcome the technical issues, and still launch the much anticipated iPhone sales on time. Many investors still believe the iPhone sales will still be the same overall in the grand scheme of things even with the possible delay (it will just be that the numbers will be pushed back). The DigiTimes story could also just end up being a rumor.
What Does The Smart Money Sentiment Say?
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According to our database of 742 elite funds, 113 were long Apple Inc. (NASDAQ:AAPL) at the end of December, down 32 funds from the previous quarter. Going the opposite way was Warren Buffett‘s Berkshire Hathaway, which has basically made a big bet on the tech company over the last two quarters.
The Bottom Line
Apple Inc. (NASDAQ:AAPL) shares are lower in the pre-market in part due to a DigiTimes report concerning a possible delay in the next generation iPhone. With that being the case, the story could just be a rumor and a possible delay might not affect total sales in the long run. For further reading, check out ‘Apple’s iPhone isn’t one of ’em – 7 Smartphones with Quick Charge‘.