Slow iPhone 5 Suppliers Worry Investors (AAPL)
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Price: $308.63 +4.84%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
Revenue Growth %: +15.8%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
Revenue Growth %: +15.8%
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While the upcoming iPhone 5 is expected to be the biggest product launch in Apple's (Nasdaq: AAPL) history, worries about component delays continue to surface. This has created nervousness among investors, which are concerned profits could also be pushed out.
Having so much anticipated demand that suppliers simply cannot produce parts fast enough is not necessarily a bad thing. However, on Wall Street, where companies are judge quarter-by-quarter, a slight hiccup in the supply chain could have a dramatic impact - especially if you're the world's largest company by market cap. Also, competition is fast on Apple's tail, closing the innovation gap quicker than ever.
Today, another supplier appears to be adding to Apple's woes. Display maker Sharp Corp has fallen behind schedule, according to reports from Reuters. The Japaneses company is struggling with high costs which have hurt margins on the screens, the report said. Apple may have to ante up more cash to speed up production, a Reuters source said.
With less than two weeks until the expected iPhone 5 September 12th announcement and the all-important holiday season just around the corner, any supply issues at this point has the potential to push eager iPhone 5 buyers unable to get their hands on the new model into other phones.
Shares of Apple are up 0.5 percent to $667.36 in pre-open action.
Having so much anticipated demand that suppliers simply cannot produce parts fast enough is not necessarily a bad thing. However, on Wall Street, where companies are judge quarter-by-quarter, a slight hiccup in the supply chain could have a dramatic impact - especially if you're the world's largest company by market cap. Also, competition is fast on Apple's tail, closing the innovation gap quicker than ever.
Today, another supplier appears to be adding to Apple's woes. Display maker Sharp Corp has fallen behind schedule, according to reports from Reuters. The Japaneses company is struggling with high costs which have hurt margins on the screens, the report said. Apple may have to ante up more cash to speed up production, a Reuters source said.
With less than two weeks until the expected iPhone 5 September 12th announcement and the all-important holiday season just around the corner, any supply issues at this point has the potential to push eager iPhone 5 buyers unable to get their hands on the new model into other phones.
Shares of Apple are up 0.5 percent to $667.36 in pre-open action.
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