Apple will release new iPhone models this year

Any prior concerns that iPhone maker Apple Inc. (NASDAQ: AAPL) won’t be able to launch a new iPhone lineup in 2020 were eased Monday morning following a report from The Wall Street Journal.

Delayed, not cancelled

Sources close to Apple’s supply chain told The Wall Street Journal that Apple is delaying a production ramp-up of its new flagship iPhones by around one month. The move comes at a time when the global coronavirus pandemic continues to disrupt Apple’s key manufacturing hub across Asia.

Nevertheless, the Cupertino-based company is still proceeding with its plans it can launch four new iPhone models, including at least one with 5G connectivity, sources told the publication. Apple is expected to launch new phones in three different sizes, a smaller 5.4-inch phone, a standard 6.1-inch phone, and a large 6.7-inch model.

All of the new phones are likely to feature organic light-emitting diode (OLED) screens but it is unclear what hardward and software upgrades and improvements will consist of.

Importance of launches

Apple fans anxiously await each year for CEO Tim Cook to take the center stage during a September event to showcase new products that are made available for sale within a few weeks. This event is particularly important for the investment community as it marks the unofficial start to Apple’s annual product refresh. 

Naturally, information about the new iPhone models are made front and center. Apple’s stock has been known to show volatility during the presentation as investors and traders are quick to judge future sales based on any new features.

This year is no different as Apple is expected to launch a 5G compatible device. According to The Wall Street Journal, analysts are modeling a 5G lineup that would help reverse last year’s disappointing launch as total shipments came in below 200 million for the first time since 2015.

Potential new timeline

Under normal circumstances, Apple starts to ramp production of its new devices in the early summer months so it can start building inventory in August, according to The Wall Street Journal. This year, Apple could start building phones from July through September with enough units completed to start building inventory in October.

This revised timeline would be in line with what Wall Street analysts were expecting. Most notably, Bernstein’s Toni Sacconaghi told clients investors should only be concerned if Apple pushes its selling launch beyond the 2020 holiday season and into 2021, according to The Wall Street Journal.