Tim Cook, Don’t Believe Everything You Read
During todays earnings call Tim Cook, CEO of Apple, took the time to address a rumor. We had posted like many others last week that Apple was cutting back component orders by up to 50%. On the outside that would be an immediate red flag that the flagship iPhone and iPad were not selling at the levels Apple had expected.
Fast forward to today and Apple reported record sales for Q1 of 2013. While these numbers did not meet expectations of investors they were good.
Tim Cook stated the follow about the component orders:
“I know there have been lots of rumors about order cuts. I don’t want to comment on any particular rumor because I would spend my life doing that,” Cook said. “I would suggest that it’s good to question the accuracy of any rumor of bill plans.”
“Even if any particular data point were factual, it would be impossible to interpret what the data point meant for our overall business because the supply chain is very complex”
Tim Cook prides himself with supply chain management and will defend any decision made, rightly so. Has Apple cut orders 50%? Only Tim and his suppliers know and only they actually know what any cut really means. As for now Apple can take pride in once again setting sales records. The stock is currently taking a beating but tomorrow is another day and we all know you can’t always meet Wall Streets expectations.