| | | Regarding an Apple modem, you noted that ". . . it hasn't been a problem before, or has it?" Well, yes, it has been a problem ever since Apple used an Intel modem on some of its models, which worked so poorly when compared with the Qualcomm modem that Apple detuned the Qualcomm modem so customers wouldn't know the difference.
Apple eventually bought the entire modem section from Intel and retained many former Intel employees who were unable to design a modem that matched the performance of the Qualcomm modem. Now the bar has been raised. Not only are the newer Qualcomm models faster, but they encompass additional spectrum, including satellite communications. It takes not only time but experience to make a successful product. It's not just a matter of using someone else's patents, for which Apple has a licensing agreement with Qualcomm. Many companies that develop proprietary technology also invent new methods of making it work – methods that they protect by NOT patenting them, in order that no one will find out exactly the secret sauce recipe that makes a difference between working and not working well.
Given that Apple no longer provides segment information on its phone sales by model or geographic area, it's becoming more difficult to find numbers that might reveal the extent to which revenues and profits may be vulnerable to worldwide economic events, or to company specific issues. I'll simply reiterate that the combination of litigation, especially in the European Union, plus the writers and actors strike that will probably increase the cost of producing new video, plus the costs, whatever they may be of making or finding a modem that delivers the necessary performance demanded today, can and probably will have long term implications for Apple's net income. Apple may also try to cover changes by buying back stock (probably below the current price) in order to increase or at least stabilize earnings per share.
And I wholeheartedly agree with your view that a mere sneeze coming from an Apple financial statement could produce unfortunate reverberations throughout the technology sector, if not the entire stock market.
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