Not what the street wanted to hear, but Apple is either bailing out or buying into their suppliers, Foxconn and Sharp, because neither can keep-up with demand on their own.
It's certainly a better problem to have than lack of demand though.
ReCapEx: The curious case of Apple's 2012 and 2013 capital expenditures
"My guess is that these attempts to shore up Sharp are directed by Apple to ensure both continuity of supply and a balanced supplier base (offsetting Samsung, another supplier.) If Sharp were to enter into some form of bankruptcy, the key plant(s) used in producing screens for Apple might be "up for grabs" by creditors and they might be taken off-line, jeopardizing Apple's production capacity, irrespective of contractual obligations. I believe that Apple's late and unprecedented expenditure was to secure this asset. I further believe that the financing for this deal was done through a swap of "pre-orders". Stepping even further into the hypothesis, I believe Apple arranged to move a Sharp screen production line onto its books and "paid" for it through a pre-payment of components."
Did Apple use $2 billion to bail out Sharp last quarter?
Foxconn chairman says company is struggling to meet demand for Apple's iPhone 5
Apple needs to wean their dependence on this guy as well as Samsung.
Foxconn's Gou says tough to cope with iPhone demand
MS Office for iOS and Android shows its face, release March 2013 for iOS first
Review: The skinny on the iPad mini—it's not the size that counts
Apple GPU vendor Imagination buys MIPS, ARM licenses patents
Pixar Names Building After Steve Jobs
Good!
Apple looks to add Samsung's Galaxy Note 10.1, Google's Jelly Bean OS to lawsuit
Apple notifying former MobileMe Members of New iCloud.com email address options
TIME Magazine uses photo captured by iPhone 4S as cover image
TIME Magazine uses photo captured by iPhone 4S as cover image - iPad/iPhone - Macworld UK
Why Is the Surface So Bad?
"Microsoft has been working on its tablet for years. It should be a whole lot better."
What tech company isn't aping Apple?
Samsung is set to rebrand company to be more Apple-like in 2013
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