Apple delayed the release of the white iPhone 4 model for the second time on Friday, but that won’t likely have an impact on Apple’s bottom line, according to UBS analyst Maynard Um. Instead of shipping at the end of July, Apple is now saying the white model won’t be available until some time later this year.
“We view the delay of the white iPhone 4 as net neutral as we believe [Apple’s] outlook likely did not embed sales of the white models given the ongoing manufacturing challenges,” Mr. Um said.
Assuming Apple accounted for additional production delays in its fourth quarter guidance, the company is likely on track to meet its own projections.
“Although the white iPhone could have potentially further helped sales, we note that consensus ests of $18.3 billion is much closer to mgmt guidance (about $18 billion) relative to historical trends,” Mr. Um said. “We still believe estimates could prove conservative given our view that guidance reflects conservatively achievable targets.”
Mr. Um also pointed out that Apple doesn’t rely solely on iPhones for its quarterly revenue. “We expect Apple’s broad portfolio (particularly iPad and iPhone) to be two of the most sought after products into [the second half of the year] and, in particular, the holiday season, which we expect will translate into continued growth momentum,” he said.
Mr. Um is maintaining his “Buy” rating and US$340 target price for Apple’s stock. Apple is currently trading at $258.36, down 0.66 (-0.26%).