China’s economy is reeling and Apple suppliers are running for the hills. Worse, Apple’s iPhone customers have, en masse, decided not to ever upgrade again. I read it on the internet. They can’t put it on the internet if it’s not true, right?
Gimme A Break
Things are bad at Apple. Instead of reporting its best financial reports ever from the recent holiday sales quarter, Apple reported only its second best. Epic fail, right? Gimme a break. Broken worse than Apple are those who report on Apple and APPL (they are not the same).
The company revised down its expected revenues from $89 billion to $84 billion. That’s bad news because the iPhone provides roughly two-thirds of Apple’s revenue.
Wrong. That’s not why it’s bad news. If iPhone, iPad, and Services revenue stayed the same, and nobody bought a new Mac for the entire quarter would the news be any different? Still down $5-billion. More interesting news, maybe. There is something of a recession going on in China and that affects… insert the famous Mac360 drum roll here… Apple. And Samsung. And nearly any other major tech company with a strong presence in China.
Apple CEO Tim Cook placed much of the blame for the shortfall on the China market. A number of factors, including phone pricing, strong local phone competition, and the brewing U.S.-China trade war may have played a role.
This will be the first quarter in which Apple will not provide a unit sales number for the iPhone.
Just like all of Apple’s competitors have done. Forever. How many Pixels did you sell, Google? Crickets. How many of anything with an Amazon logo on it did you sell Amazon? Crickets. How many Galaxy-whatever models did you sell Samsung? Crickets.
Me senses something of a double standard here.
Analysts will be left to estimate unit sales numbers based on revenue and the all-important ASP (average sale price) number.
Guesstimates will rule. Looks like a level playing field to me. Everyone guesses. Apple takes home the most revenue and profits.
Apple would have looked much better had it announced that reporting change in front of a winning quarter.
Agreed. We’re at the intersection of Murphy’s Law and Change Happens. Apple’s executives predicted the best quarter of financials. Ever. They were wrong. It’s the second best quarter. Ever.
Tim Cook Needs to Do This to Stem Apple’s Decline
Is this a decline as in Decline of the Roman Empire? Or, a hiccup?
Cook believes that China’s tepid economic growth and trade tensions with the U.S. led to a decline in retail store traffic in the region. But a closer look at the developments in the Chinese smartphone market indicates that the blame lies with Apple as well.
Uh huh. An armchair quarterback watching the world from afar knows more about what is going on in China than Apple’s executives.
I think nobody knows more about taxes than I do, maybe in the history of the world. Nobody knows more about taxes
Nobody in the history of this country has ever known so much about infrastructure as Donald Trump
I think nobody knows the system better than I do
I know more about ISIS than the generals do. Believe me.
For obvious reasons, I stopped doing that. It’s easy to talk the talks, but not so easy to walk the walk.
Apple’s problems run deeper than just the Chinese market, which is the company’s third-largest source of revenue with 18% of the total top line. Cook has admitted that the upgrade cycle to new iPhones in some developed markets has slowed down.
Yet, iPhone sales have been mostly flat for four years.
Tim Cook needs to bring new users into the iPhone ecosystem, and that means making the devices more accessible to users in both emerging and developed markets.
That’s it? That’s the advice? New customers?
Based on Apple’s recent earnings, maybe there isn’t as much to fix as the armchair quarterbacks think needs to be fixed. The world has an economic problem going on, and Tim Cook can’t fix that.