Apple shares rose 3.2 percent yesterday, shrugging off an analyst’s report knocking the gadget giant for delays in the iPhone 5 launch. First-quarter iPhone sales outpaced Google’s Android for the first time since 2009.T (William Farrington)
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Apple shares bounced back from a seven-month low yesterday, shrugging off a pessimistic analyst’s report that said consumers might have to wait until October to get their hands on the iPhone 5.
Ittai Kidron, an analyst with Oppenheimer & Co., said a later-than-expected release of the latest iPhone would cut into Apple’s September sales — leading him to cut his price target on the company to $420 from $450.
“We’ve been modeling a full month of new iPhone sales in September and now believe it’s more prudent to model a late September, early October launch,” Kidron wrote in his research note. Apple has not commented on when the new iPhone will arrive.
Apple investors ignored the note, pushing up the Cupertino, Calif., company’s shares by 3.2 percent, to close at $325.30.
Loyal followers of Apple have been awaiting the next-generation of the popular smartphone, and uncertainty over its launch has contributed to a lackluster stock performance this year, according to Apple watchers. CEO Steve Jobs’ health has been another concern.
Off setting Kidron’s cautious report was lots of buzz on Apple products.
A new round of rumors surrounding the launch of the iPhone 5 phone surfaced on Apple fanboy blogs. Boy Genius reported that Apple — contrary to Oppenheimer’s report — would host an unprecedented August unveiling and ship the iPhone 5 to stores by the end of that month.
The blog speculated the iPhone 5 would feature a radical redesign, not just a minor evolution that some Apple loyalists have feared.
Also, a report out of Taiwan suggested that iPad 3 production was on pace for a potential September surprise.
The conflicting and unconfirmable Apple speculation is common with the super-secretive company.
“Not only has the real information been locked down harder, but the level of misinformation has been ratcheted up,” said Colin Gillis, an analyst with BGC Partners. That said, a new iPad by year’s end would not be surprising.
“A retina screen alone would be worth an incremental upgrade,” Gillis said. Apple suppliers have indicated that the high-tech screens are coming to the tablet.
Oppenheimer’s Kidron said slower iPhone sales could lead to lower profits at Apple because the more-recently rolled out iPads have a lower profit margin than their iPhone cousins.
“While good iPad demand is a positive, a heavier mix of iPads means margin pressure, Kidron wrote.
Charles Wolf, a Needham & Co. analyst, added to Apple’s luster with a report that showed its iPhone gained smartphone market share in the quarter that ended in March while Android, Google’s software, lost some ground.
Wolf predicted that the customers waiting on the iPhone 5, which is expected to work on AT&T and Verizon’s networks, would help Apple capture even more market share.
