One example of how important the iPhone is to Apple's earnings is a hypothetical scenario in which Apple missed iPhone unit sales quarterly expectations by 10%. Such a scenario wouldn't necessarily be too much of a stretch considering Samsung misjudged demand for the Samsung Galaxy S5 by 40% last year. If Apple missed iPhone sales expectations by 10%, or five million units, EPS would have fallen by 10%. If we then assumed iPad or Mac sales missed expectations by 10%, the resulting EPS impact would be a rounding error.


War:

I'm no business major, but isn't something like this pretty dangerous long-term? I mean talk about "putting all your eggs into one basket." I mean I understand that Apple still has a commanding lead over the smart phone market with the iPhone, but to place such a weight on the back of really one major product line seems sort of shortsighted.


posted by kleinbl00: 1170 days ago