And at the end of the day, the Wall Street Journal was off. Way off.
Last week the news they ran about Apple cutting iPhone 5 parts orders caused quite a commotion. The news spread quickly, stock prices went down just as fast, the more naïve decided to believe everything that was being said, and the source for this news or their accuracy became a rather unimportant detail. A mere afterthought.
To refresh the memory, this news firstappeared in a japanese newspaper called Nikkei, and the Wall Street Journal reproduced the whole thing. Well, almost. The only part they didn’t put in the news (actually, they did put, and then they took it out) was a little comment as to the source of the news: “people familiar with the matter”. Very precise, huh? Forbes made quite a nice article about that.
Yesterday Apple unveiled the fiscal results for Q1 2013. And the only problem they are facing is the same as always: to match the gigantic demand for their products. They sold a total of 10 iOS devices. Per second. Compared with the same period of the year before, the earnings went from $46.3 billion to $54.5 billion, iPhone sales went from 37 million to 47.8 million, and WSJ credibility for this sort of stuff fell to below zero.
They sold 75 million iOS devices. That’s more than the entire population of Italy, or France.
Tim Cook took a moment to address specifically what the WSJ did:
“Let me make one additional point on this: I know there’s been lots of rumors about order cuts and so forth, and so let me just take a moment to make a comment on these. I don’t want to comment on any particular rumor, because I would spend my life doing that, but I would suggest it’s good to question the accuracy of any kind of rumor about build plans. And I’d also stress that even if a particular data point were factual, it would be impossible to accurately interpret the data point as to what it meant for our overall business, because the supply chain is very complex, and we obviously have multiple sources for things. Yields might vary, supplier performance can vary, the beginning inventory positions can vary, I mean there’s just an inordinately long list of things that would make any single data point not a great proxy for what’s going on.”
To sum up: Do you know who actually knows what is going on at Apple? Apple. Don’t trust these news that deduce facts from isolated data. Apple is selling like crazy and the only problem they are facing is to find time to count the mountain of money they are sitting on. The only thing that is not doing well in this market is editorial responsibility.