The brilliance continues....

Apple sold over 1M iPhones in the first 24 hours of availability bumping shipping times back to 1-2 weeks.

So, it's becoming more and more apparent just how brilliant a business move releasing the iPhone 4S instead of the iPhone "5" was. In just 24 hours Apple (AAPL) managed to sell almost twice as many iPhone 4S's as they did iPhone 4's even though this was a "minor" refresh. I admit they probably would have sold a few more "5's" had they done a major upgrade but let's look at this like as a business, not as a consumer.

It's been less than 2 years (the standard time until you can upgrade your phone at a discount) since the release of the last iPhone so this phone wasn't meant to target iPhone 4 users who would be less likely to upgrade anyway (unless the carriers waived those contracts which they may have done for a "5"). This phone was meant to go after the 70M+ iPhone, iPhone 3G and iPhone 3GS users (for which this is a huge upgrade) who are eligible to upgrade, the 1B+ non-smartphone users, and the fools still using Blackberry's, Nokia's and Droids. Then when Apple (AAPL) releases the "5" next summer, the carriers waive every ones contracts so we can all upgrade at the discounted price. Boom goes the dynamite. Also, Apple's (AAPL) margins will go up since there in no major redesign and there shouldn't be any supply shortages after the initial rush. I don't know if this move is one last flash of brilliance from Job's, or the first in many to come from Tim Cook, but look for Apple (AAPL) to continue it's dominance in the mobile market.

This is not a recommendation to buy or sell any securities. DAK was long AAPL at time of publication but positions can change at anytime.