INSG stock has had a disappointing week after Apple (NASDAQ:AAPL) said that its rollout of a 5G ready phone would take longer than initially expected.
5G Launch Initially Boosted INSG Stock
INSG shares rocketed last week after Inseego (NASDAQ:INSG) unveiled its next-gen 5G product portfolio at CES 2020 in Las Vegas earlier this month. Its 5G range will be primarily built on expanding the Internet of Things (IoT), as well as providing fixed wireless access and mobile broadband technology solutions. Some of the products showcased by Inseego include the Connected Car, a collaboration with Veoneer, Ericsson (NASDAQ:ERIC), and Verizon (NYSE:VZ), for a range of new driver supports, and its Augmented Reality-enabled Smart Glasses manufactured by Vuzix.
Apple Stays Tight-Lipped
However, the huge level of optimism towards the future rollout of 5G technologies has been dealt a setback this week and dashed those gains for INSG stock. Apple said in its earnings call earlier this week that its development of 5G ready products is in the “early innings of its deployment on a global basis.” CEO Tim Cook remained tight-lipped on when, or indeed what, to expect of Apple’s 5G plans, despite multiple rumors circulating that a 5G equipped iPhone could drop before the end of the year.
5G stocks toppled across the board following Cook’s comments or lack thereof. Chipmaker Xilinx (NASDAQ:XLNX) was in the red after it also warned of slower than expected 5G deployments, with CEO Victor Peng pointing to a “slowdown in 5G rollout across multiple regions as many operators take a pause before the next wave of infrastructure deployment.” Despite not having any direct dealing with Apple, INSG stock still tumbled 25% in light of the iPhone makers’ earnings call.
However, it’s not all doom and gloom for investors in INSG shares. 5G technology remains only a fraction of the company’s business as it is expected to bring at least US$10 million in 5G-related revenue compared to total revenue of about US$170 million for 2019. 5G will arrive eventually, and this tech stock still looks like an impressive prospect for whenever that may be.
Featured Image: DepositPhotos © jamesteohart