4 Reasons the iPhone 5 in June Makes Sense

Apple (Nasdaq: AAPL  ) contractor Foxconn may be recruiting a new recruiter.

In a Japanese TV interview, a Foxconn recruiter revealed that the company is going to need 18,000 employees to ramp up production of Apple's next revolutionary smartphone.

"It will come out in June," he said.

Between a neglectful employee at a California beer hall two years ago and a loose-lipped recruiter this time around, it's hard to keep Apple's secrets from trickling these days.

Apple will obviously never confirm the chatter. It may not necessarily be true. Even if the first iPhone 5 handsets begin rolling off the Foxconn assembly line in June, it could still be weeks or months before the retail release takes place.

However, there are a few reasons that it makes perfect sense.

1. Apple has historically released its iPhones in June or July
Dating back to the original iPhone that hit stores in June 2007, Apple has typically stuck to June and July release dates.

The one major exception was last year's iPhone 4S, bumped all the way to October. We may never get the real answer behind Apple's delay last year, but a popular theory is that the Cupertino tech star was hoping that its stateside wireless carriers would have its 4G networks fleshed out in time. When it was taking too long, the iPhone 5 became the iPhone 4S.

2. The 4G revolution is here
Last month's new iPad hit the market with a 4G unit that can be serviced by the country's two largest wireless carriers. AT&T (NYSE: T  ) and Verizon (NYSE: VZ  ) are finally far enough in their 4G rollouts to support Apple's dreams of faster connectivity.

If the iPad can now do it, so can a properly equipped iPhone.

3. The Lumia 900 is coming this weekend
Apple isn't afraid of Microsoft (Nasdaq: MSFT  ) or Nokia (NYSE: NOK  ) , but Sunday's debut of the Lumia 900 -- Nokia's handset that will be Microsoft's boldest bet yet on its fledgling mobile operating system -- is going to turn heads.

It's cheap. It's rich with features. Early demand has been strong by some accounts. 

What does the success of Nokia's handset running Windows Phone have to do with Apple's release calendar? Well, if the phone gains any kind of traction, Apple is going to want to make sure that its iPhone 5 hits the market as soon as possible.

4. CEO Tim Cook doesn't want to let investors down
Why not June? Even if we're talking late June or even early July, Apple probably wants to get its annual iPhone cycle back on historical track.

Apple's stock has been on a tear over the past decade, but it actually fell between late July to late September last year. Could the iPhone 4S delay have played a part or was this mostly concerns about Steve Jobs? Either way, CEO Tim Cook could overcome both concerns by getting Apple back to its early summer iPhone releases.  

You say you want a revolution
A new special report singles out three winners in the iPhone, iPad, and Android revolution. The report is free, but it won't be around forever, so check it out now

The Motley Fool owns shares of Apple and Microsoft. Motley Fool newsletter services have recommended buying shares of Apple, Microsoft, and Nokia. Motley Fool newsletter services have recommended creating bull call spread positions in Microsoft and Apple. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.


Read/Post Comments (6) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 03, 2012, at 2:53 PM, 1984macman wrote:

    It's baloney. This is a bald-faced attempt to slow the sales of iPhones by suggesting an upgrade is just around the corner. It's intended to be destructive to Apple's stock price, and especially insidious because it can't be disproved until it doesn't happen, months from now!

  • Report this Comment On April 03, 2012, at 10:34 PM, jdwelch62 wrote:

    Yeah, I guess The Motley Fool is just one giant anti-Apple conspiracy...

    macman, chill a bit, June is just 2 months away...

    :-)

  • Report this Comment On April 03, 2012, at 11:00 PM, baldheadeddork wrote:

    One reason it doesn't: Last year Apple said it was moving the iPhone refresh to the fall so the summer event could focus on operating system updates and refreshes. They haven't said anything since to change that.

    And, if there was an iPhone coming in June we would be hearing a steady stream of rumors about the new hardware now. Instead it's dead silence, just as it usually is six months out.

  • Report this Comment On April 04, 2012, at 3:21 AM, bradeoneill wrote:

    macman- damn you are on to us.

  • Report this Comment On April 07, 2012, at 12:30 AM, InvestWhatWorks wrote:

    There is a bit of lost-in-translation here. I don't speak Chinese, so I can't say whether the Chinese to Japanese translation is accurate. But I do speak a little Japanese. The person being interviewed doesn't express certainty about the iPhone's release (using "rashii", which more or less means "it seems").

    A better translation might be:

    "It seems like the iPhone 5 will be released in June."

  • Report this Comment On April 07, 2012, at 12:53 AM, InvestWhatWorks wrote:

    Or I should say:

    (According to the Japanese translation of the interview in Chinese) the person being interviewed doesn't express certainty about the iPhone's release.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1854218, ~/Articles/ArticleHandler.aspx, 11/26/2014 5:58:51 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement