The Atlanta Journal-Constitution
Bank of America: Apple 5G iPhone launch may be delayed
Apple extended its recent selloff as analysts continue to see uncertainty over how the coronavirus outbreak will affect the iPhone maker’s sales and supply chain.
Bank of America wrote that Apple’s highly anticipated 5G iPhone could see its fall release delayed by a month as a result of the outbreak. The firm cited a conversation with an expert on the company’s supply chain, Elliot Lan. Lan also expects the launch of the iPhone SE2 will be delayed “by a few months” due to “both supply issues as well as the weaker demand environment from COVID-19.”
According to BofA analyst Wamsi Mohan, the launch timing for upcoming models will “depend on how production ramps back up in April and May.” Earlier this week, iPhone maker Hon Hai Precision Industry Co. said it expects its Chinese plants to begin operating normally by the end of March.
As of Friday morning, Apple stock had fallen 13% since its record high close on Feb. 12.
Apple’s second-quarter results are expected to be released around the end of next month. Currently, Wall Street expects adjusted earnings of about $2.71 a share and revenue of $61.5 billion.
UBS on Friday wrote that “the risk of lower demand in the nearterm is increasing” for Apple, and that the impact was “likely to expand beyond China.” Analyst Timothy Arcuri added that while he had expected some demand would simply be delayed, “given the broader impact, we now think the demand impact could continue” into June.”
On a more positive note, Nomura Instinet analyst Jeffrey Kvaal stood by his recent comments that Apple’s supply chain was seeing a faster recovery than he expected. The “risk of a major supply shock is declining,” he wrote. Supply constraints “seem likely to be short term in nature.”