5C will do nothing but add to the profit machine. The year-over-year advantage in earnings should be significant.
The most admirable thing about Tim Cook is that he chooses to do the right thing rather than react to short-term market expectations. Washington D.C. provides us with a strong example of what happens when decision makers react to short-term market obsessions.
During the financial crisis, markets begged for bailouts; this caused politicians to hastily pass stimulus that ended up placating investors for an hour at most. The Sept. 8, 2008, stimulus package that the market wanted so badly actually caused the Dow to drop from 11,500 to 9,200 in one month's time.
A similar effect would likely have happened to Apple if Tim Cook had listened to the voices of Wall Street and offered up a low-margin iPhone 5C designed to capture market share in China and India. Such a move would have meant that Apple ceased to be Apple, thereby eliminating profits moving forward.You can only imagine the AAPL carnage that would have ensued. Clearly Apple is in good hands. Steve made a great choice to hand over the reins to Tim.
At the time of publication, the author was long AAPL. Follow Jason Schwartz @economictiming This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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