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Verizon Seen Owing Apple Up to $14 Billion for iPhones

• astrodust 13y ago
  "The report suggests sluggish demand for the iPhone, which accounts for about half of Apple’s sales." So we're back to the old "Apple is on the verge of bankruptcy" trope? Sales are always higher for the phone after the release, plus during the holiday season. Is it really surprising that sales have simmered down a bit? "Sluggish" is hardly the word when Apple has shipped 55 million iPhone 5 units, and continues to sell on average 410,000 iPhones per day. These are the same reports that go all hair-on-fire when Apple's growth growth slows marginally.
  • scholia 13y ago
    Not really. Opening sentence: "Verizon Wireless may end up owing Apple Inc. (AAPL) as much as $14 billion in purchase commitments over time if the mobile carrier fails to sell an agreed number of iPhones, a report from Moffett Research LLC said." Verizon's problem (if true) is that it agreed to pay Apple for more phones than it can sell. In the short term, that's a Verizon problem. Only in the longer term might it be an Apple problem.