Lovers of Apple products rejoiced at having the icon of their existence available for sale on the company?s website. In fact, Apple fans blew through the total available iPhone 5 launch pre-order inventory in just 1 hour.

Disappointment soon followed when the company announced that they were slipping the expected delivery date 1 week to Sept. 21 within 1 hour of the products on-line launch.

Apple has repeatedly underestimated the market response on their launches indicating that the company is extremely sensitive to inventory overhangs and wants to avoid them at all costs. On the other side of coin, Cupertino has to be happy with these results ? though by the end of day 2 the company?s stock was up only slightly at 1.22%.

Utilization of Proceeds?
Apple is facing steep, well-financed competition that have deeper semiconductor and display resources at their discretion. Apple has held off making upfront financial commitments thinking that their size and prestige would precede them in supply line negotiations. The company?s decision to play hardball with Samsung is now, in hindsight, beginning to appear as a strategic faux pas that may have far-reaching and unintended downstream consequences.

BSN* Take
A law in game theory posits that when one player begins to lose, the other players gang-up against the losing player, thus insuring their demise. Apple may have made a rather large error in not using their retained earnings in a meaningful way as regards their supplier roadmap investments. The company has left many strategic supply positions open for extended periods within the company ? which may be interpreted either that these positions are extremely difficult to fill or that various departments cannot reach agreement on strategic supply issues.

Que sais-je?