Skip to main content

Market Overview

Apple Shares Tank As Report Says New iPhone Launch Could Be Moved To Next Year

Apple Shares Tank As Report Says New iPhone Launch Could Be Moved To Next Year

The shares of Apple Inc. (NASDAQ: AAPL) dropped late Wednesday as a report by The Nikkei Asian Review suggested a significant delay in the launch of the next iPhone.

What Happened

Apple's decision comes as the novel coronavirus (COVID-19) pandemic has hurt product development schedule, supply chain, and consumer demand, according to the Nikkei.

People close to the matter told the Nikkei that the fact that this will be the company's first iPhone with 5G technology is also contributing to the pressure for the device to be a hit.

"[Apple] is concerned that the current situation would significantly lower consumer appetite to upgrade their phones, which could lead to a tame reception of the first 5G iPhone," one of the sources said. "They need the first 5G iPhone to be a hit."

The Cupertino-based company typically launches new iPhones around September or October every year but is considering delaying the launch by months this time.

"The discussion is still at an early stage, and the fall launch is not completely off the table," a person with direct knowledge of the matter told the Nikkei. "But the 5G iPhone could be postponed to 2021 in the worst-case scenario."

The final decision in the matter would be taken at the latest by May, according to the Nikkei sources.

Why It Matters

The drop comes at a time when the wider market surged with the hope of the United States Senate approves a $2 trillion economic stimulus package for corporations, small businesses, and individuals affected by the coronavirus outbreak.

Apple's shares surged earlier in the day, reaching as high as $257.9. The surge came as Deutsche Bank analyst Jeriel Ong upgraded the stock from hold to buy, saying that Apple's valuation looked attractive following the recent selloff, as reported by MarketWatch.

Price Action

Apple's stock closed 0.55% lower at $245.52 on Wednesday. The shares traded 0.8% higher at $247.52 in the after-hours session.


Related Articles (AAPL)

View Comments and Join the Discussion!

Posted-In: Coronavirus Nikkei Asian Review Steve Jobs Tim CookNews Tech Media General Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at