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Apple iPhone’s June Launching to Be Delayed?



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Apr 15 2007
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The announcement that Apple would delay the release of its newest version of Mac OS X, known as Leopard, didn’t surprise many people. But Apple Inc.’s (Nasdaq: AAPL, stock) Apr-12 statement that it has redeployed some of its software engineering and quality assurance personnel away from Leopard to the team working on the June launch of the iPhone suggests that some last-minute problems are cropping up and raises questions about whether Apple has had to push back the iPhone release.

Apple had never specified when in June the device would ship, but its wireless partner, AT&T (NYSE: T, stock), had been cited in published reports naming a June 11 target date, the same day of an Apple software developers conference.

Apple has hinted that making iPhone is no cake-making as it contains the most sophisticated software ever shipped on a mobile device. With two months or less to go before market release, a device such as iPhone would ordinarily be going through a heavy round of testing in preparation for volume manufacturing. The apparently sudden shift of personnel away from Leopard suggests that a late wrinkle has emerged – at least that’s what most analysts believe.

Richard Doherty, director and co-founder of the Envisioneering Group, says he’s tested the phone and didn’t uncover problems with it. So, the rumors were that Apple is actually working on fixing security holes as that’s the last thing Apple would like to have – a hacker attacks.

Since Apple hopes customers will use iPhone for online purchases, it wants to ensure iPhone operating system is more secure and powerful than existing mobile phone such as Microsoft Corp.’s (Nasdaq: MSFT, stock) Windows Mobile or Nokia Corporation’s (NYSE: NOK, stock) Symbian.

Another potential problem facing Apple’s team is the challenge to give iPhone sufficient battery life. The battery will have to be powerful enough to handle a variety of functions, but it must also be compact. There’s a lot of skepticism about the iPhone’s battery life especially when it is expected to have two batteries, one for the phone and the other for the music player. The phone battery, which is very small, would have to power a huge screen, Wi-Fi network connections, and many other power-hungry features.

Analysts are generally okay with a slight delay in Leopard and should the delay in launching of iPhone be announced, they are still bullish on Apple’s stock. It’s better to be late but delivers a well-tested iPhone rather than meet the deadline but giving customers a bug-riddled iPhone, which could be a disastrous. And knowing Steve Jobs, he would not want to tarnish the image of Apple and most importantly his name with an inferior product. Furthermore Microsoft Vista was late by 2-years.

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