Rumors on next iPhone emerge as Apple stock soars

Updated August 1, 2017 - 4:28 pm

Apple Inc. said that it’s in good shape as it heads into the fall when the company is expected to release its next models of its trail-blazing smartphone.

That includes a rumored 10th-anniversary edition of the smartphone — an “iPhone 8” or “iPhone X” — with an all-new design and a price that could top $1,000.

The news was announced Tuesday in a quarterly earnings report.

It would have taken a pretty big miss to refocus analysts’ attention on anything but the new phone.

But investors seemed pleasantly surprised by the results. In the minutes after the report, shares rose sharply — more than 5 percent from its closing price of $150.05.

The tech giant beat expectations for both revenue and profit, reporting earnings per share of $1.67 on $45.4 billion in revenue. Analysts had expected earnings of $1.57 per share on $44.9 billion in revenue.

The company also reported that it sold 41 million iPhones, up slightly from the same period last year when sales hit 40.4 million — a welcome increase, as analysts and others have noted a sales drop-off for iPhones as consumer wait for the next big thing.

Analysts were closely eyeing Apple’s projections for the next quarter to try to determine how the company is thinking about its short-term future. The company said it expects to make between $49 billion and $52 billion in its next, crucial sales quarter.

Lower guidance for revenue in the fourth quarter — below $49 billion — could have indicated that Apple would delay all of its models or cut the prices of the LCD phones, UBS analysts Steve Milunovich and Benjamin Wilson said in an investor’s note ahead of the report.

Experts say Apple’s future depends a lot on this next generation of iPhones, as the smartphone industry faces slower growth and higher competition. Sales of the iPhone have been somewhat disappointing for several quarters, as consumers save for the new, redesigned model.

“Investor focus over the next two quarters should be on the iPhone 8 cycle,” KeyBanc Capital Markets analysts said in a note to investors earlier this month.

In a survey of potential iPhone buyers, analysts at UBS found the greatest level of interest was focused in the high-end model, noting that respondents were more interested in the “iPhone 8” than they have been in Apple’s last two iPhone generations.

If it takes Apple too long to get its phones to customers, it could hurt its performance in the all-important holiday season. Apple’s chief rival, Samsung, just reported record-breaking profits despite a tough year when it suffered the recall of its Note 7 smartphone. Much of Samsung’s success comes from its business selling smartphone components to other manufacturers, including Apple.

And Samsung is already generating good buzz about its upcoming Note 8, due to debut later this month.

Any disruption of iPhone sales could be damaging to Apple, which has counted on strong smartphone sales to weather problems in the past. Now the company faces slowing demand, including in China, the world’s largest smartphone market. This quarter, China sales totaled $8 billion — slightly under expectations for $8.57 billion. Some analysts have pointed to China’s market as a possible reason Apple capitulated to Chinese government demands earlier this week to stop distributing apps that iPhone users downloaded to avoid government censorship.

The lion’s share of the company’s money is still tied to the iPhone, which accounts for nearly 55 percent of its sales revenue.

ad-high_impact_4
Business
Bellagio, MGM Resorts International’s luxury hotel turns 20
The more than 3,000-room Bellagio hotel is situated on the site of the former Dunes Hotel. The Dunes was imploded in 1993, and construction of the Bellagio started in 1996. It cost $1.6 billion to build, making it the most expensive hotel in the world at the time. The Bellagio was former Wynn Resorts Ltd. Chairman and CEO Steve Wynn’s second major casino on the Strip after The Mirage. MGM Resorts International acquired the property from Steve Wynn in 2000. (Tara Mack/Las Vegas Review-Journal)
Facial recognition software at G2E – Todd Prince
Shing Tao, CEO of Las Vegas-based Remark Holdings, talks about his facial recognition product. (Todd Prince/Las Vegas Review-Journal)
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Bobby Baldwin to leave MGM
MGM Resorts International executive and professional poker player Bobby Baldwin is set to leave MGM.
Caesars has new armed emergency response teams
Caesars Entertainment Corp. has created armed emergency response teams. They are composed of former military and law enforcement officials. "These teams provide valuable additional security capabilities,” Caesars spokeswoman Jennifer Forkish said. Caesars is hiring Security Saturation Team supervisors, managers and officers, according to LinkedIn. The company did not say how many people it plans to hire for the units. (Las Vegas Review-Journal)
Las Vegas, airlines prepare for CES
CES in January is expected to attract more than 180,000 attendees. (Las Vegas Review-Journal)
AGS partners with Vegas Golden Knights
AGS is the nation’s second-largest manufacturer of Class II slot machines used primarily in tribal jurisdictions. It announced a marketing partnership with the Vegas Golden Knights NHL team. (Las Vegas Review-Journal)
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like