Don’t hang up on the iPhone just yet.
Apple’s cancellation of orders with iPhone parts suppliers is not tied to a drop in demand but to a tech update, according to one tech researcher.
The Cupertino, Calif., company will roll out a next generation line of iGadgets later this year and is sourcing its screens from a new supplier, the researcher added.
“The data is accurate, cancellations are happening – but what is the underlying reason?” Trip Chowdhry of Global Equities Research, said. “There is a technology shift happening at Apple.”
News of the order cancellations sent Apple shares tumbling nearly 7 percent over two days earlier this week.
Chowdhry, who has often been an outspoken critic of Apple, feels the sell-off was overblown.
The researcher, in a report, predicts Apple is two or three quarters away from introducing an evolutionary leap in phones and maybe even a jump into TVs.
Apple is investing heavily in a technology known as indium gallium zinc oxide, or IGZO screens, according to Chowdhry.
The glass Apple is innovating with is lighter, more energy- efficient, easier to cut for a variety of form factors and sizes;, and costs the same as older technology, Chowdhry said.
IGZO glass could be used in flexible phones that represent the next leap in hand-held technology, he said.
The researcher also said the glass Apple has been ordering can be cut in large sheets, meaning the company could be prepping for its long-anticipated high-definition flat-screen TV.
Since CEO Tim Cook took over at Apple, the company has yet to wow with the type of new industry-changing products it has long been known for, but Chowdhry said it is laying the groundwork for more innovation this year, and that if he’s right the stock should be worth $650.
The New York Post
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