Rhys Blakely
Win tickets to the ATP finals
In a rare admission of fallibility, Apple has delayed its next-generation operating system to ensure the timely release of the highly anticipated iPhone.
Leopard, the latest version of the Mac OS X line, will now be pushed back until October, from June. Analysts expect the move to hit Apple's software revenues by about $150 million this year and said there could be a knock-on effect on sales of its Mac computers.
The US debut of the iPhone, first unveiled in January and regarded as by far the more important product, is still slated for June, but Leopard engineers will be pulled onto the project to ensure it meets that deadline, Apple said. The news follows suggestions from people who have seen iPhone prototypes that the device is still far from ready.
The decision to divert resources to the iPhone underscores the expectation attached to Apple's first foray into the mobile sector. David Bailey, the Goldman Sachs analyst, said: "Although the push out of Leopard is not ideal, we view iPhone as the driver of the next leg to the Apple growth story."
The admission from Steve Jobs, the Apple chief executive, that "life often presents trade-offs" stands askance to the military precision with which Apple usually unveils new products. The company prides itself on keeping launches secret until the last minute, a tactic that feeds a fierce rumour mill and lifts hype.
The Leopard delay, however, is Apple's second in four months and will raise speculation that the group risks losing its legendary cool as it faces new competitors in new markets.
Apple TV, a device that streams video from computers to TV's and sets Apple against established set-top box makers such as Cisco's Scientific-Atlanta, was nudged back from February to March 21. The company has also drawn criticism in recent years for releasing versions of its iPod music players that were not robust enough.
Poor battery life - thought to be a problem on iPhone prototypes - has also plagued the iPod.
The glitch to Leopard, the sixth major upgrade to Mac OS X since 2001, will be all the more galling for Apple after the jibes it angled at Microsoft when Vista, its rival operating system, was put back two years.
Stuart Miles, the editor www.pocket-lint.co.uk, the technology site, said: "Market pressures and the fear of leaks has forced Apple to take a different approach with the iPhone. The looming deadline in the US clearly seems to be taking its toll."
Apple will ship two versions of the iPhone - a 4-gigabyte model for $499 and an 8-gigabyte one for $599. It will initially be available in the US through AT&T's Cingular Wireless network. It will be sold in Europe later this year and in Asia in 2008.
Apple has said it hopes to sell 10 million units in 2008, a total that would represent about 1 per cent of the mobile market.
Articles from our sister site WSJ.com:
You may be asked to subscribe to read certain articles
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
36-month car lease
on contract hire for
£359.99 plus VAT pm
12 months for the price of 11 and a 5% discount.
Offer ends 31/11/09
The UK's leading alternative to showroom finance.
Finance packages tailored to your needs.
Minimum loan of £15,000
Car Insurance
£12,578 per annum
The Independent Housing Ombudsman
London
Competitive
Barclaycard
Not Specified
The Sheppard Trust
London
£80-95,000
Clay McGuire Executive Selection
Moments from Battersea Park.
For sale with Winkworth.
See your free Experian credit report beforehand
Book now & save over £100pp.
11 cool resorts, lowest prices... Early Booking offers 15 Nov.
20% off selected Azores holidays taken in October with Sunvil Discovery
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
World Class Golf, Spa and preferential Beach Club. Private estate overlooking West Coast
Villas from £275 per night inclusive of Golf
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.