Next-Gen Apple (AAPL) Device May Miss Key Holiday Selling Season
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Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.5%
EPS Growth %: -0.7%
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One of Apple's (Nasdaq: AAPL) key products might see a delay until after the New Year as supply constraints loom.
According to Reuters, the next-generation Apple iPad mini may see a delay tied to implementation of a higher-resolution "Retina" display in the device. Sources said that panel suppliers are just now ramping production to meet orders for the device.
Best-case scenario is Apple will still have limited quantities of the device before the end of 2013, but most expect a delay on larger shipments until early 2014.
News comes as Amazon.com (Nasdaq: AMZN) recently unveiled its new Kindle HDX tablets, which boast a sharper display among other improvements. Microsoft (Nasdaq: MSFT) also debuted its Surface 2 last month, though a smaller version of that tablet isn't expected until potential the second-quarter of 2014.
While a delay into 2014 might be bad news for Apple iPad mini sales in the U.S., it might still be enough time for sales in China, one of its key growth markets. The Chinese New Year holiday generally happens at the end of January/early February, meaning that holiday shopping in that market sees a month or two delay from when it begins in Western Cultures. Arguably, a significant portion of Apple iPad mini sales came from China and surrounding markets with the first version of the device.
Market watchers will keep eyes peeled for updates on the next iPad mini, which should makes its debut later this month. Shares of Apple are down in early trading Wednesday.
According to Reuters, the next-generation Apple iPad mini may see a delay tied to implementation of a higher-resolution "Retina" display in the device. Sources said that panel suppliers are just now ramping production to meet orders for the device.
Best-case scenario is Apple will still have limited quantities of the device before the end of 2013, but most expect a delay on larger shipments until early 2014.
News comes as Amazon.com (Nasdaq: AMZN) recently unveiled its new Kindle HDX tablets, which boast a sharper display among other improvements. Microsoft (Nasdaq: MSFT) also debuted its Surface 2 last month, though a smaller version of that tablet isn't expected until potential the second-quarter of 2014.
While a delay into 2014 might be bad news for Apple iPad mini sales in the U.S., it might still be enough time for sales in China, one of its key growth markets. The Chinese New Year holiday generally happens at the end of January/early February, meaning that holiday shopping in that market sees a month or two delay from when it begins in Western Cultures. Arguably, a significant portion of Apple iPad mini sales came from China and surrounding markets with the first version of the device.
Market watchers will keep eyes peeled for updates on the next iPad mini, which should makes its debut later this month. Shares of Apple are down in early trading Wednesday.
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