Tim Cook needed to free the iPhone of Samsung. As I've said before, you don't send boatloads of cash to someone you're suing for stealing your IT. Samsung had been expecting up to $11 billion from Apple for its components this year. I think Samsung received Cook's message loud and clear: The gravy train is stopping.
Everything does come at a price, even the delicious $11 billion slap to Samsung.
The price: Apple had trouble meeting incredible demand for its iPhone 5. They just couldn't get more than 5 million of them out the door this weekend. My guess - some of suppliers replacing Samsung had trouble keeping up the pace.
Face it. It's one-for-one. For every iPhone 5, there's one screen, one battery, one everything. Those 5 million iPhones required 5 million teensy weensy units for each of its 20+ specialized components. Consider the difficulty of obtaining 5 million units from companies that have never see that kind of demand.
Apple just launched a blockbuster product with newbie suppliers.
That takes guts and genius. I know the Street was looking for more than 5 million but really, you've got to give Tim Cook a hand for making it work. Over 100 million parts were seamlessly sourced, assembled, shipped, and delivered in those 5 million iPhones by launch weekend. Really, it's quite a logistical operational feat.
Apple made the right move making the supplier change. Five million iPhones moved in a single weekend under these conditions is a remarkable achievement. It should bring admiration, not disappointment. You want to be a buyer of the stock, not a seller.
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