Apple’s iPad business has been nothing short of rock solid the last few years, but the last two quarters have really been something. Yesterday’s quarterly results report was expected to be good, but the reality was better than anyone outside Cupertino expected.
Apple’s recent earnings weren’t pretty, but they also weren’t worse than expected after Tim Cook’s letter offering revised guidance a few weeks ago. They simply offered us a definitive confirmation of what many in the tech press and Apple community already suspected. Whether it is due to stagnation, high prices, overall slowdown in the smartphone market, China, or all of the above, the iPhone has plateaued. However, if you look beyond that basic fact, there is more to this story.
Since the third quarter of last year didn’t cast enough doubt on using sources in the supply chain to predict iPhone sales, maybe their latest abysmal failure will. We should be able to put it to bed now, and any analyst or tech writer worth their salt should, too. Tim Cook, the master of the supply chain, knows what he is doing, and the bought and paid for sources at Foxconn, Samsung, and other component makers don’t, at least when it comes to Apple’s iPhones sales.