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.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Jason Schwarz is an option strategist for Lone Peak Asset Management in Westlake Village, Calif. He is also the founder of the popular investment newsletter available at www.economictiming.com. Over the past few years, Schwarz has gained acclaim for his market calls on the price of oil, Bank of America, Apple, E*Trade, and his precision investing in S&P 500 option LEAPS. His book, The Alpha Hunter, is set to be released by McGraw Hill in December 2009.

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