iPhone Rumor Gnaws at Apple

 

Chatter about a possible delay in the anticipated launch of Apple's (AAPL) iPhone spooked shares of the computer company Thursday.

Apple stock recently shed $1.79, or 2%, to $88.04, but it was off as much as 2.7% earlier in the day.

"Based on our checks, we believe the timing of Apple's iPhone commercial launch is around late first quarter 2007 to early second quarter 2007," CIBC World Markets analyst Ittai Kidron wrote in a Thursday note. CIBC does and seeks to do business with the companies it covers in its research reports.

"We have no exact details on the form factor or functionality of the handset, yet we believe Apple could be designing as many as three different models (real or decoy)," Kidron added.

Apple has not confirmed the launch of iPhone, but some analysts have expected that its debut could come as early as Macworld in January.

"This is a product that Apple is not even acknowledging exists at this point," says Richard Stice, an equity analyst with Standard & Poor's who follows the company.

Still, if the expectation was that the device was to launch at Apple's annual gathering, "that would explain (the stock's) move."

Stice does not own shares of the company, and his firm does not do banking.

"These rumors are a dime a dozen at this point, and I think Apple knows what they're doing," says Gene Munster, an analyst with Piper Jaffray. "We're 90% confident that they will show it by Macworld. It may not be in full production, but they'll show it."

He says that the company has a history of showing a product, shipping it soon after, but not having immediate availability. Munster's firm makes a market in the stock, and does and seeks to do business with the companies it covers.

"Speculation about new Apple products is always a great form of entertainment, especially around December," says Jupiter Research's Michael Gartenberg. "We're seeing people react to rumor.

"At this point, it's simply idle speculation."

>To order reprints of this article, click here: Reprints

TheStreet Premium Services    For Personal Service: 877-471-2967

Jim Cramer
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn More
New: ETF Profits
ETF Profits:
Get money-making ideas from the hottest investment vehicle on the planet. Our experts show you how to play various ETF sectors to help pump-up your portfolio. Learn More
OptionsProfits
OptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn More
Doug Kass
Real Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn More
Stocks Under $10
Stocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn More
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
blog comments powered by Disqus
Dow Jones S&P 500 NASDAQ 10-Year Note
12,890.46 1,351.95 2,927.23 20.47
Oil *
118.75
UP
6.51
UP
1.99
UP
11.37
UP
0.72
10 Yr
2.05%
SPDR Gold
168.02
+0.05%
+0.15%
+0.39%
+3.65%
Data delayed 20 minutes

Top Stories and Tools

Brokerage Partners

After the Bell

Before the Bell

Booyah! Newsletter

ETF Daily

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

We respect your privacy.
Podcasts

Connect with TheStreet