Remember that old chestnut about not believing everything you read in the paper? It's still true. And even more so in the internet age.

A case in point was yesterday's false rumor reported by our sister blog Engadget that the much-hyped Apple Inc. (NASDAQ: AAPL) iPhone was going to be delayed. This is one the oddest episodes I've seen in my career as a business journalist.

From the start, there were plenty of red flags.

Firstly, why would a company whose obsession with media leaks rival that of the late Richard Nixon distribute an open memo to employees on such a sensitive topic? Apple is being closely followed by a huge and ever-growing number of media outlets. Any memo detailing anything regarding the much-anticipated iPhone would have been leaked within minutes. And let's credit Apple CEO Steve Jobs with a little more savvy than that. This is a company with a tense relationship with the media already.

Secondly, Apple would have been required to put out a public statement about an iPhone delay. In the eyes of the SEC, this is material information that must be disseminated. If you have any doubts about that, check the chart of the company's stock yesterday.

Should Engadget have been more careful about how it reported the rumor?

There have been rumors circulating around the blogosphere, which have reached the Street that Apple Inc. (NASDAQ: AAPL) might have to delay the release of the iPhone from June to October and the Leopard operating system, already delayed to October, delayed again until January. Apple's PR department has reiterated to the mongers that all is still on schedule.

Okay, great, but then this begs the question, "What if?'" What if Apple did have to delay the launch of these products, especially the iPhone? The reasons would have to be known as they would ascertain the ultimate and proper release date. Is it component sourcing that is an issue? Is it a software-quality issue? Did the beta-testing units developed a few glitches? The reasons would be put into one of two camps: Can Apple control the issue, or is the issue out of Apple's control?

If the iPhone is delayed, what happens to the stock short-term and to the earnings model? The stock would take a hit to be sure, as it did today when the rumors reached traders, before the retraction. Usually this is a situation of shoot first, ask questions later and indeed AAPL plunged to $103.42 (down 2.7%) today on the news.

Update: The iPhone release date of June 29 has been confirmed as of June 3, 2007.

Earlier today, Eric Buscemi noted in his daily Newspaper wrap-up that there are rumors circulating that the iPhone might be delayed. This is not even a week after the announced Leopard delay.

LOOPRumors reports that according to Smarthouse News Australia, insiders at Foxconn, the company that manufactures the iPhone for Apple Inc. (NASDAQ: AAPL), mentioned quality problems that could cause the delay in the original release date of June 11.

According to these reports -- and it's up to you whether you choose to believe them or not -- there are concerns over the device's sturdiness and battery life.

The rumors, I'm sure gain some credibility after the announced Leopard delay especially since the reason Apple gave for the delay is that it needed to divert resources from the project so that it could launch its highly anticipated iPhone on time.

Back then I said regarding the Leopard delay that "I have no doubt that after so many pundits have remarked about the serious consequences an iPhone delay would have on Apple stock, that the company decided to on this strategy." If on top of that the iPhone is delayed, look for a sharp correction in AAPL stock. But fear not, this company and its executives have been in tighter spots. It will rebound.

Update: The iPhone release date of June 29 has been confirmed as of June 3, 2007.