There was no specific reason mentioned for the delay.
Apple Inc. Revenue (TTM)
Apple Inc. Revenue (TTM) | Apple Inc. Quote
Are the Delays Becoming Recurrent?
Business Insider observes that of late Apple is “having a tough time making promises and sticking to them.”
Apart from Home Pod, the report added, Apple has also delayed the launch of Apple Pay Cash. Originally scheduled for September release, the service is still not available. Also, there is no information regarding a launch date.
In 2016, Air Pods too suffered launch delay, reportedly on account of manufacturing issues. Originally slated for an October 2016 release, the launch was delayed to December 2016. AirPods became available only in January 2017 and even then a supply crunch meant that users had to wait for some more time before they could get their hands on the wireless earphones.
Though Apple never gave a confirmed date, the company’s mega edition iPhone X was launched in November, much later than the widely anticipated September release. Apple generally releases its latest models in September. However, the other two editions namely iPhone 8 and iPhone 8 Plus were released in September.
All About the HomePod
At the WWDC held in June, Apple announced the HomePod. With it, Apple is preparing itself to take on Amazon’s (NASDAQ:) Echo and Alphabet’s (NASDAQ:) Google Home, which is a little speaker-like home automation device that can do everything from streaming music to dimming lights or adjusting the heat on the compatible thermostat.
HomePod has similar functions to Echo and Home. Interestingly, it is also integrated with Apple Music. The speaker is a seven-inch circular device and will be available in two colors — black and white. The device is powered by an A8 chip processor and has a customized four-inch woofer. Apple is working on the music quality and expects this to be the differentiator compared with the other home speakers available in the market.
A few days back it was reported that Apple was working on integrating the next generation of HomePod with face ID technology.
However, as with all Apple products, price point remains a concern. HomePod carries a price tag of $349, heftier than Echo and Google Home, which are priced at $179 and $129, respectively. Analysts observe that Apple is already late to the party and such a hefty price tag might prove to be an impediment.
Also, analysts are wary that the delay could mean that the company will lose out on holiday season sales, which will now be dominated by new speakers like Google's Home Max, Amazon’s Echo Plus and the Sonos One.
Zacks Rank and Share Price Movement
At present, Apple carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, the company has outperformed the industry in the past year. Shares of Apple have surged 52.3% compared with the industry’s 50.6% rally.
Stock to Consider
A top-ranked stock in the broader technology sector is Jabil Inc (NYSE:) , which sports a Zacks Rank #1.
Long-term earnings growth rate for Jabil is currently projected to be 12%.
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