Another analyst says he’s hearing that the OLED iPhone model, referred to by most as the iPhone 8, will be delayed. On the plus side, he doesn’t expect it to have any negative impact on Apple stock (AAPL), given the extremely high sales volumes that are expected.
Indeed, analysts across the board are naming so many positives for Apple stock (AAPL) these days that it seems unlikely that anything could derail it. Then again, it has been range-bound for almost the last month, so perhaps all the hype has finally made investors realize that it’s time to slow down and wait to see what actually ends up happening with the iPhone 8.
Another call for the iPhone 8 to be delayed
Recently a notorious Apple stock (AAPL) bear called for doom and gloom for Apple stock (AAPL) when he forecasted that the iPhone 8 won’t be delayed just a little bit. Rather, he seemed to suggest that the production ramp would be pushed into early next year, signifying, at the very least, a long delay in broad availability, meaning that a few would get their phones this year but most would have to just wait. He wasn’t the first to report that the iPhone 8 could be delayed, although his report did come after most of Wall Street had let the idea of a delay just drop.
This week Longbow analyst Shawn Harrison said he’s joining the “OLED iPhone is delayed camp,” as he heard that the mass production ramp is being pushed to September or even early October. This is in line with the earliest versions of the delayed iPhone 8 rumor, which indicated that the phone will still arrive in time for the holiday season.
iPhone 8 delay won’t matter for Apple stock (AAPL)
Harrison added that production for the iPhone 7s and 7s Plus isn’t being delayed, which could be why some are floating a release date for the iPhone 8. They could be getting the different models confused. His supply chain sources blamed the iPhone 8 delay on the new A11 processor, Touch ID fingerprint sensor and OLED display.
In his note dated June 1, he supplied this quote: “… Suppliers were told to initially not ramp as much as is typical because of semiconductor and sensor issues. Volumes should be up from last year and Apple gave suppliers capital to expand in order to meet higher demand.”
He added that signs of pent-up demand continue to appear, particularly in China where sales are lagging. This is an interesting interpretation of lagging sales there, as others would say that domestic smartphone makers are taking a bite out of Apple’s sales. However, Harrison is probably right when he says that any delay in the iPhone 8 ramp “should be a non-event” for Apple stock (AAPL). He did warn that the delay could open the company up to the possibility of losing sales to Chinese smartphone makers.
How can Apple stock (AAPL) drive to $1 trillion market cap?
Aside from the iPhone 8, there’s been a lot of talk about Apple stock (AAPL) rising enough to bring the company to a $1 trillion market capitalization. However, it seemed stuck in idle for a while, perhaps because of the rumor about the OLED iPhone being delayed, even as analysts tried to pump it up. Today Apple stock is back on the rise finally, but so is the rest of the market, with the S&P 500 and NASDAQ Composite also setting new highs.
Apple stock (AAPL) rose by as much as 0.86% to $154.50 during regular trading hours today, and if it keeps rising, it could set a new record high today, even without any real news. But if we were to look purely at fundamentals and ignore the rash exuberance the markets have enjoyed recently, what would it take for Apple stock to push toward a $1 trillion market cap.
InvestorPlace contributor Luce Emerson argues that barring any major new commercially successful innovation, the company needs to make a major acquisition. It certainly has the cash to do so, but only if it can bring its treasure chest back home as most of it is overseas. He suggests Netflix again, as many others have, but said that whatever the company acquires, it would have to be something the market values highly enough to tack on another $200 billion.