Bearish analyst pushes new & unlikely reason for OLED 'iPhone 8' delay, suggests October l...

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in iPhone
An analyst who is notoriously bearish on Apple stock is pushing a new claim that that metal casing issues in the fabrication process of the "iPhone 8" are causing a problem, and claims it could be the source of a possible delay in shipping the OLED device.




Jun Zhang from Rosenblatt Securities said to investors Friday that Apple is allegedly "currently having some issues with [the] metal frame" surrounding the high-end "iPhone 8." It is not clear exactly what "industry research" that the analyst is drawing from, however.

Apple has been using stainless steel plus forged and spun aluminum in aspects of its devices since the '80s, and aspects of technologies developed to shape the materials have been used in the iPhone and iPad since inception. It seems improbable that the Apple's most proven fabrication technology for the entire device is causing the problem, if there even is one, in delivering the "iPhone 8."

Friday's report of enclosure fabrication being a sticking point in the "iPhone 8" is the first of its kind. No other supply chain source, analyst, or prolific leaker has suggested that there is a problem with the device's frame at all.

Zhang has historically pinned Apple's stock valuation lower than the rest of Wall Street. In January of 2016, the firm downgraded Apple to $102 per share, with a neutral rating. In March of 2017, the company raised the target to $120, when the price was well over $140.

It wasn't until the middle of August that Zhang raise the price to $150 -- and the stock hasn't dropped below that level since the day before the increase in the target. However, the company still rates the stock as neutral, meaning that the stock's performance will be in line with the average return of others in its industry over the following 12 months.




In actuality, Apple stock has out-performed the rest of the NASDAQ. In the last year, the NASDAQ has climbed 22.3 percent since January 3. Apple has climbed over 37 percent in the same timeframe.

This is not the first time that the very same analyst has made gross errors in judgement about potential problems with Apple's future products.

In April 2016, Zhang said that if the iPhone 7 didn't have a "panel upgrade," there would be no other feature upgrade possible to drive demand, even though Rosenblatt acknowledged "camera upgrades, speaker upgrades, a home-button upgrade, and some software upgrades" were probable for the device. At the time, the firm had a $105 Apple stock price target, and the stock was actually priced at $104.35.

Apple saw sales of 78.3 million units in the holiday quarter after the iPhone 7 -- the company's first quarter of fiscal 2017. That was an increase from the previous record, 74.8 million iPhones the company sold in the same quarter a year prior, and not a decline, as was incorrectly predicted by Rosenblatt.

Additionally, Zhang still does not seem to differentiate the fall's new iPhone models beyond the OLED "iPhone 8." Predictions appear based on across-the-board stock limits, or later shipments than historical precedent suggests.

In Friday's research note, seen by AppleInsider, Zhang says that the company is attempting to "assess the impact to production timing" and will update accordingly.

Comments

  • Reply 1 of 18
    Same song, different year. 
    anton zuykovStrangeDaysnetmage
  • Reply 2 of 18
    wood1208wood1208 Posts: 1,568member
    I propose to compile statements from these analysts(with their names,affiliations) and once the 2017 iPhones are announced/released, put it out on web.
    anton zuykovwatto_cobra
  • Reply 3 of 18
    robjnrobjn Posts: 196member
    There is a possibility (all be it a slim one) that they are using a new material and new process. It could be a bulk metallic glass alloy (aka LiquidMetal) and an injection molding process. This would be technically challenging and would impose several design constraints because of the injection molding process and the fact that the material is too tough to be machined.

    Some rumors said that the phone was "all glass" and one that it has "glass sides". This would technically be true if it is a Bulk metallic glass.

    The color and finish of this alloy could easily be confused with polished stainless steel.
    cornchip
  • Reply 4 of 18
    Plain and simple --- this dude is paid by hedge funds to put out well-timed reports in an effort to manipulate AAPL stock price. If you have been in AAPL for a while, you can easily identify these clowns/criminals. 
    fastasleepwatto_cobraRayz2016
  • Reply 5 of 18
    NY1822NY1822 Posts: 519member
    thank you Mike for including his calls on Apple and where Apple was trading....often that gets left out of other people's articles. 
    watto_cobra
  • Reply 6 of 18
    Not the end of the world. Apple will sell again enough new LCD models to meet its guidance. The OLED model appeals mostly to new smartphone buyers and Android switchers and with its rumored price range, to a very tiny percentage of those. Current iPhone users are very comfortable with their bezels, the clickable Home button (both mechanic and haptic) and TouchID. Those who need a larger display have already bought the Plus series and will do again with the 8 series, because the OLED model is not a solution for that. A tall screen is a tall screen, not a large screen. When used in landscape it offers (more or less) the same insufficient vertical space as the 4.7 inch model, so where is the benefit of removing the bezels? I don't think many of current iPhone users are keen to learn new ways to handle the phone, new ways to authenticate or pay etc... That model may be the one with the highest return rate in iPhone history. Again, no worries, the iPhone is a solid product and its future is not determined by just one model...
    edited September 2017 watto_cobra
  • Reply 7 of 18
    I keep seeing articles that use the rather loaded term "delay" when discussing the iPhone 8's launch date. What date is considered to be "on time," and why that date?

    I mean it as a serious question. If Apple hasn't announced anything date, on what basis are we saying it is "delayed"? Is that a characterization that you feel is accurate, and whose opinions do the posted article(s) here represent?
    SoliStrangeDaysnetmagewatto_cobrapscooter63
  • Reply 8 of 18
    SoliSoli Posts: 8,289member
    I keep seeing articles that use the rather loaded term "delay" when discussing the iPhone 8's launch date. What date is considered to be "on time," and why that date?

    I mean it as a serious question. If Apple hasn't announced anything date, on what basis are we saying it is "delayed"? Is that a characterization that you feel is accurate, and whose opinions do the posted article(s) here represent?
    Yesterday I read that HomePod was delayed until December. Ya know, the month Apple said it would come out when they first announced it back at WWDC which is a pretty common timeframe for brand new product categories for Apple.
    watto_cobrapscooter63
  • Reply 9 of 18
    Mike WuertheleMike Wuerthele Posts: 3,336administrator
    I keep seeing articles that use the rather loaded term "delay" when discussing the iPhone 8's launch date. What date is considered to be "on time," and why that date?

    I mean it as a serious question. If Apple hasn't announced anything date, on what basis are we saying it is "delayed"? Is that a characterization that you feel is accurate, and whose opinions do the posted article(s) here represent?
    I know you do. It's not an invalid question.

    But, did you read the article? I'm been pretty clear in this piece and others about spelling out that any "delay" is based on historical precedent for the timetable between announcement, pre-order, and launch.
    suddenly newtonfastasleepnhughes
  • Reply 10 of 18
    sog35 said:
    Don't listen to this DUMB ASS.

    He gets paid by China brands like Xiaomi to spread bullshit rumors about Apple.

    This idiot had a $100 price target for Apple last year. 


    A little decorum bro.
  • Reply 11 of 18
    tzeshantzeshan Posts: 1,756member
    sog35 said:
    LOOK EVERYONE!!!!

    A DELAY ON A PRODUCT THAT HAS NOT EVEN BEEN ANNOUNCED YET!!! OMG!!!

    The other day I went to a resturant and told them my meal was late. It was delayed 2 hours.

    They asked me when did I order the meal.

    I told them I didn't order it yet....
    And you believe the new phone will be called iPhone 8 even though it is not announced. 
  • Reply 12 of 18
    SoliSoli Posts: 8,289member
    tzeshan said:
    sog35 said:
    LOOK EVERYONE!!!!

    A DELAY ON A PRODUCT THAT HAS NOT EVEN BEEN ANNOUNCED YET!!! OMG!!!

    The other day I went to a resturant and told them my meal was late. It was delayed 2 hours.

    They asked me when did I order the meal.

    I told them I didn't order it yet....
    And you believe the new phone will be called iPhone 8 even though it is not announced. 
    He's changed up the name, the starting price, the starting capacity, and the features so many times that he's basically Sybil if all her personalities were competing Apple analysts.
    watto_cobra
  • Reply 13 of 18
    Not the end of the world. Apple will sell again enough new LCD models to meet its guidance. The OLED model appeals mostly to new smartphone buyers and Android switchers and with its rumored price range, to a very tiny percentage of those. Current iPhone users are very comfortable with their bezels, the clickable Home button (both mechanic and haptic) and TouchID. Those who need a larger display have already bought the Plus series and will do again with the 8 series, because the OLED model is not a solution for that. A tall screen is a tall screen, not a large screen. When used in landscape it offers (more or less) the same insufficient vertical space as the 4.7 inch model, so where is the benefit of removing the bezels? I don't think many of current iPhone users are keen to learn new ways to handle the phone, new ways to authenticate or pay etc... That model may be the one with the highest return rate in iPhone history. Again, no worries, the iPhone is a solid product and its future is not determined by just one model...
    That's a lot of DOOM. Poor Apple, their unannounced product may be the worst one yet! smh
    edited September 2017 Soliwatto_cobrapscooter63
  • Reply 14 of 18
    lkrupplkrupp Posts: 6,408member
    Not the end of the world. Apple will sell again enough new LCD models to meet its guidance. The OLED model appeals mostly to new smartphone buyers and Android switchers and with its rumored price range, to a very tiny percentage of those. Current iPhone users are very comfortable with their bezels, the clickable Home button (both mechanic and haptic) and TouchID. Those who need a larger display have already bought the Plus series and will do again with the 8 series, because the OLED model is not a solution for that. A tall screen is a tall screen, not a large screen. When used in landscape it offers (more or less) the same insufficient vertical space as the 4.7 inch model, so where is the benefit of removing the bezels? I don't think many of current iPhone users are keen to learn new ways to handle the phone, new ways to authenticate or pay etc... That model may be the one with the highest return rate in iPhone history. Again, no worries, the iPhone is a solid product and its future is not determined by just one model...
    Sounds like the musings of an addled brain. Probably too much THC in the Vodka.
    netmagewatto_cobra
  • Reply 15 of 18
    I keep seeing articles that use the rather loaded term "delay" when discussing the iPhone 8's launch date. What date is considered to be "on time," and why that date?

    I mean it as a serious question. If Apple hasn't announced anything date, on what basis are we saying it is "delayed"? Is that a characterization that you feel is accurate, and whose opinions do the posted article(s) here represent?
    I know you do. It's not an invalid question.

    But, did you read the article? I'm been pretty clear in this piece and others about spelling out that any "delay" is based on historical precedent for the timetable between announcement, pre-order, and launch.
    I did, but I didn't connect the dots. Here's probably what you mean:

    Predictions appear based on across-the-board stock limits, or later shipments than historical precedent suggests.

    Since you mean Zhang's predictions, and Zhang is attributed to saying "delay" I supposed you did spell it out.

    Thanks for writing a clear article and a straightforward headline. (The use of passive verbs in headlines to obfuscate the subject drives me nuts)


  • Reply 16 of 18
    wood1208 said:
    I propose to compile statements from these analysts(with their names,affiliations) and once the 2017 iPhones are announced/released, put it out on web.
    Don't worry, DED exists for this very purpose. 
    cornchipwatto_cobra
  • Reply 17 of 18
    foggyhillfoggyhill Posts: 4,758member
    Not the end of the world. Apple will sell again enough new LCD models to meet its guidance. The OLED model appeals mostly to new smartphone buyers and Android switchers and with its rumored price range, to a very tiny percentage of those. Current iPhone users are very comfortable with their bezels, the clickable Home button (both mechanic and haptic) and TouchID. Those who need a larger display have already bought the Plus series and will do again with the 8 series, because the OLED model is not a solution for that. A tall screen is a tall screen, not a large screen. When used in landscape it offers (more or less) the same insufficient vertical space as the 4.7 inch model, so where is the benefit of removing the bezels? I don't think many of current iPhone users are keen to learn new ways to handle the phone, new ways to authenticate or pay etc... That model may be the one with the highest return rate in iPhone history. Again, no worries, the iPhone is a solid product and its future is not determined by just one model...
    That's a lot of DOOM. Poor Apple, their unannounced product may be the worst one yet! smh
    They even may end up selling so much of it that they can't sell even more!!! My God! What will they do! Will they survive this sales explosion.
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