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Here's What an iPhone 8 Delay Would Mean for Apple's Earnings

Apple (AAPL) may have to break its tradition of releasing the new iPhone in September this year due to supply constraints.

The 10th-anniversary edition of the iPhone is all but expected to be delayed at this point, Wells Fargo Securities senior analyst Maynard Um wrote in a note to investors on Monday. "It's noteworthy that this would be Apple's first iPhone delay, which would be highly atypical and possibly reflect increasing difficulty in delivering innovation and/or slipping execution," he wrote.

While many investors say the delay doesn't matter because it will just push off the earnings growth until the next quarter, it's not that simple, he argued. "Deflating F17 (fiscal 2017) and inflating F18 doesn't create incremental value but merely redistributes demand/earnings from one FY (fiscal year) to another," he explained.

Apple is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AAPL? Learn more now.

Apple's fiscal 2017 runs from September 25, 2016 to September 30, 2017. Since Apple may reportedly push off the iPhone launch until November or December, that means the 2017 fourth quarter that ends in September won't get the boost in iPhone sales that it's come to rely on from releasing a new iPhone in...


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