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The State of iPhone (Premium)

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This has inadvertently turned into a big week of iPhone news and commentary. But I think this is an important topic, so what the heck.

Apple’s recent warning about lower-than-expected iPhone sales was met by histrionics on both sides of the fence. Apple haters---and yes, they exist---rejoiced in the firm’s declining fortunes, while conveniently ignoring the fact that Apple is a huge, huge business and will be for the foreseeable future. Apple’s biggest fans, meanwhile, circled the proverbial wagons, first denying that all of the evidence we had seen about an iPhone shortfall was true and then falling back on nonsense defenses related to Apple’s services business (which is much, much smaller than iPhone) or its cash balance, which says more about the past than the future.

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