Tim Cook is reportedly hosting an all-hands meeting with every Apple employee today about the revelations regarding stalling iPhone sales.
The news caused Apple shares to plummet in after-hours trading, taking some Apple suppliers with it. As part of the meeting, Cook will spell out what the news means, and take questions from employees.
Cook’s revelation about the fact that the latest iPhones aren’t selling to expectations — particularly in China — caused the company to revise its earnings. The reduced earnings cut the amount of money Apple expected to rake in for the holiday quarter by $9 billion.
“This is probably one of the hardest things Tim Cook has had to do as CEO, putting out that letter today,” Michael Gartenberg, a former Apple marketing executive, told Bloomberg after the release of yesterday’s letter. Wedbush Securities analyst Daniel Ives called it, “the most defining moment of Cook’s career.”
What happens next is going to be interesting to watch. Apple will be keen to prove that its disappointing quarterly earnings are not part of a wider trend. We may also see reduced iPhone prices, more emphasis on Apple’s other products, and potentially a revised strategy that focuses less on the unpredictable China.
What do you expect to be the upshot of yesterday’s revelations? Let us know your thoughts in the comments below.
Twrd4321 on January 3rd, 2019 at 14:17 UTC »
If 2017 showed people’s willingness to pay more for a phone, 2018 shows that willingness has its limits.
Chrisixx on January 3rd, 2019 at 14:00 UTC »
The line up is too confusing (naming, specs, pricing, colours)
The price increases are not justified and alienate a large portion of their hardcore customer base (students for example) and makes entering developing markets like China and India very difficult
Some aspects of the software are stagnant compared to the competition. While Google has the advantage of harvesting insane amounts of data for their camera software, it's crazy how far ahead they now are.
The iPhone SE was popular due to its size and the fact, that it offered fantastic specs in a small package. Do not give up on it.
A new iPad Mini is needed, or the iPad Mini 4 has to receive a massive price drop. It makes no sense, that it is so much more expensive than the 2018 iPad.
Repairs have been getting more and more expensive, while at the same time Apple Care prices have been going up. This should not be the case, if you want to maintain a happy customer base.
Just some of my current issues with Apple.
jameseachan on January 3rd, 2019 at 13:08 UTC »
Spoiler - it’s because they’re really fricking expensive.