Eagerly awaited by both the buying public and investors, the larger 5.5 inch iPhone by Apple Inc. (NASDAQ:AAPL) may prove to be chimera for this year at least. The famous analyst Ming-Chi Kuo from KGI Securities, whose predictions are frequently though not always borne out, says that several problems have cropped up to put a roadblock in the way of an on-time release for the largest form factor of the iPhone 6, due to be made available later this year.
Mr. Kuo’s information points to two sources of the delay. One is irregular coloration of the larger aluminum shell that protects the iPhone’s back surface and gives it the quality feel that is part of the whole aesthetic experience of owning one of these devices. The other is the claim that Apple (AAPL) is having trouble with touch sensitivity problems around the edges of the larger form factor’s screen, as it ventures into the previously untried waters of the “phablet” market.
Though the Cupertino company will undoubtedly smooth out these production problems in time, this may well mean that the autumn release of the largest iPhone will be put on hold. This delay could last until right before Christmas 2014, or might even push release of the 5.5 inch iPhone 6 back as far as 2015. At the moment, the medium sized 4.7 inch iPhone 6 is the only new design certain to be released on schedule – or even this year.
This news follows hard on the heels of other tidings that a delay in the iWatch smartwatch’s release is also probable. Once again, Mr. Kuo was the bearer of bad news, predicting that the much-awaited iWatch will be delayed, too, once again by unexpected technical hurdles. The soonest iWatches will be seen in retail is October to November, according to the analyst, with the bulk of production to occur in 2015.
As few as 30% of the expected numbers of iWatches may actually be shipped by year’s end this, a major blow to the anticipated rollout. Though 3 million iWatches is a respectable figure by any count, it is still far short of the 10 million units Mr. Kuo had earlier predicted would be in circulation by the time the ball dropped in Times Square on New Year’s Eve.
This news could have important repercussions for investors. Apple (AAPL) was predicted to be strongly bullish later this year based on an expectation of a robust product release in September, and possibly as early as August. With releases due to be stretched out gradually over several months or half a year, however, the positive effect may be much less, and share value growth may be far more tepid than was expected even a few weeks ago.
