Home Technology iPhone 5 Launch To Boost Apple’s Q4 Results?

iPhone 5 Launch To Boost Apple’s Q4 Results?

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September 12th could be a great day for iPhone lovers; following the news that Apple Inc. (NASDAQ:AAPL) is set to hold an event on the said date, reports are already speculating that the main agenda will be launching the anxiously awaited new gadgets. The company had said earlier that the highly awaited next generation of iPhone, alias iPhone 5, will be out this fall, therefore the rumors can only serve to suffice that call.

iPhone 5 Launch To Boost Apple's Q4 Results?

According to reports, launching iPhone 5 on September 12 could result in the device being available in retail stores before the end of September, which in turn could coincide with the company’s Q4 tail-end, meaning that iPhone 5 sales could well form part of the Q4 revenues. Analysts believe that this kind of scenario could result in improved Q4 results, as compared to Q3’s missed earnings targets.

As featured in one of our articles, Apple Inc. (NASDAQ:AAPL) placed much of the blame over its missed earnings target during Q3 on the fact that customers held on to their cash, awaiting the launch of the next gen iPhone. However, in yet another article, we did feature the fact that Apple is becoming more and more vulnerable than before, exhibiting cases of Euro Zone crises impact, along with market slowdown in China and the U.S, its major bread baskets.

There is no doubt that the launching of the next gen iPhone will send consumers into a frenzy, of course, spending the amounts they saved for the best. However, a simple logic test will tell us that for those who saved in anticipation of iPhone 5, it is nothing more than a deferred expenditure on the side of the consumer, and deferred income on Apple’s side. Therefore, how this is going to boost the revenues to me seems less significant.

Nonetheless, you could be of the opinion that since it’s a new product, other customers, including those who had not planned for it, could as well purchase the device. In my opinion, this is what could cause a real impact on the company’s revenues, but yet again, we did feature an article whereby some reports suggest that consumers are already becoming bored with the traditional iPhone/iPad slogan.

Additionally, considering the frequency in which other companies are joining the battle of smart phones and tablets, there may no longer be a guarantee that Apple can sit back and assume enormous sales. Google Inc (NASDAQ:GOOG) Nexus has already joined with much cheaper gadgets, and so has Microsoft Corporation (NASDAQ:MSFT), with its Surface tab. In as much as they are nowhere near Apple’s standards, they could offer consumers a second thought.

This also does to some extent prove why Apple Inc. (NASDAQ:AAPL) is in line to launch a cheaper iPad, alias iPad mini. However, regardless of whether the company does launch the products for sale before the end of the September quarter, or after, Apple Inc. (NASDAQ:AAPL) still should be able record improved sales, as compared with Q3 sales, largely because of the most recent launch of various products and software in China (Mountain Lion and the new iPad).

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Sheeraz Raza

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