GO
Loading...

Enter multiple symbols separated by commas

Apple iPhone on Schedule, but New Operating System Delayed

Apple's said it was delaying the release of its new computer operating system, sending its shares down 3%.

The company said its eagerly anticipated iPhone was on schedule to ship in late June as planned after passing several of its required certification tests.

Sources told CNBC's Jim Goldman that the iPhone may be released earlier, around June 12.

Apple usually introduces beta versions of new operating systems in connection with its Worldwide Developers Conference in San Francisco in June, which is when its system was slated for release.

But it said delivering the phone on time contributed to the delay of the next version of its OS X operating system, code-named Leopard, until October because the company said it had to divert resources to the iPhone.

"iPhone contains the most sophisticated software ever shipped on a mobile device, and finishing it on time has not come without a price -- we had to borrow some key software engineering and ... resources," Apple said in a statement.

Tim Bajarin, an analyst with Creative Strategies in San Jose, Calif., said the delay in Leopard could slow the pop in sales that normally comes from die-hard Apple computer fans, who will now likely wait to buy new computers.

"I actually think the effect is going to be somewhat negligible," Bajarin said. A delay would be about 3% or less per quarter. That's roughly 8 cents on $3 in earnings.

Leopard is expected to boast new features including a file back-up feature called "Time Machine" and improvements to its e-mail and instant messaging software. Another feature allows users to move from their standard desktop view to an archival view showing every change made to a particular file.

Apple said Leopard's features would be complete in early June ahead of its worldwide developers conference but that the product would not be ready for release. Instead, the company said it plans to give developers a test copy and ship Leopard in October.

The delay follows Apple's January debut of its much-anticipated take on the smart phone, combining a phone, an iPod and instant messaging in a sleek device with a large screen.

Analysts have said the iPhone is a potentially huge source of growth as Apple seeks new revenue streams and ways to build on its 70%-plus U.S. market share for digital music players.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Why women cheat?

    Is cheating bad? Why do women cheat? The founder and CEO of affair website Ashley Madison tells all, including why he has his eye on China.

  • American Pharoah

    As American Pharoah chases the Triple Crown at the Preakness this Saturday, his earning potential can only go up.

  • Banking on your brand: Mika Brezezinski

    Mika Brezezinski, "Morning Joe" co-host, talks about giving women, entrepreneurs and millennials the tools to live and work to their full potential.

U.S. Video

  • Cramer: Here's a sign the market could rally

    Wall Street's been soaking in red, but "Mad Money" host Jim Cramer has one signal to watch for that could point to another run.

  • Burger war maneuvers

    Cramer looks at the number of company's selling burgers and tries to determine the quality names, as well as those to avoid.

  • Cramer: What's driving defense?

    Cramer says that even though President Obama has made it clear the US can no longer be the world's policeman, the country can become the world's arms dealer. Profiting from defense spending.