iOS 5 iPhone 5 iTunes News

Wall Street cuts Apple estimates, iPhone 5 “delay” the reason

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 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.