This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple iPhone 5 Delay Is Spoiling the Fun

NEW YORK (TheStreet) -- Dogged by Google (GOOG) Android phones, sales of Apple's (AAPL) dated iPhone 4 have tuckered out a bit.

While the iPhone 4 is still flying out of the stores at Verizon (VZ) and AT&T (T), the pace of sales seems to have started to slow. Recent checks with Verizon stores by BTIG analyst Walt Piecyk show that the new 4G LTE HTC Thunderbolt phone is outselling the iPhone 4 in some locations, according to a report on blog Boy Genius.

With Apple's annual tradition of introducing of an updated iPhone in the summer, sales typically cool in anticipation of the new model. This dip normally doesn't elicit big concerns among Apple watchers, but this year, facing hotter competition and a delayed iPhone 5, the pressure is more acute.

A longer wait for the iPhone 5 and the dazzling speeds of phones like the Verizon HTC Thunderbolt will translate to some lost business for Apple.

"Apple will likely cede some market share in the first half of this year now that Androids have caught up and even surpassed the iPhone," said Rodman Renshaw analyst Ashok Kumar.

Apple has emphasized that its upcoming World Wide Developers Conference, usually a launch pad for the new iPhone, will instead focus specifically on software. The consensus among analysts and bloggers is that the iPhone 5 will debut later than normal this year.

And even though the new crop of Androids at Verizon will have the super-fast 4G LTE technology, the Apple iPhone 5 will not, as TheStreet reported in February.

The delay of the iPhone 5 and lack of cutting-edge speeds won't help keep Apple's momentum in high gear.

"Apple's iPhone 5 has to happen by September or they will miss the holiday season," said Kumar, adding that the iPhone is one of the biggest growth drivers for Apple, and any impact on sales is a big area of concern.

The anxiety about the pace of Apple's sales growth have helped trim Apple's share price. Apple is down 4.5% since hitting an all-time high of $364.90 in mid-February. For comparison, Apple's performance has lagged the Nasdaq, which is only down 1.5% for the same period.

"This is clearly worrisome," said Kumar. "Apple's is the one playing catch up now."

Apple shares were down $1.77 to $346.77 in afternoon trading Friday.

--Written by Scott Moritz in New York.



>To contact this writer, click here: Scott Moritz, or email: scott.moritz@thestreet.com.

To follow Scott on Twitter, go to http://twitter.com/MoritzDispatch.

>To send a tip, email: tips@thestreet.com.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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.
Submit an article to us!
DOW 17,075.01 +131.20 0.77%
S&P 500 1,978.19 +10.62 0.54%
NASDAQ 4,437.8550 +22.3650 0.51%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs