Apple has been an absolute juggernaut in terms of sales, growth, revenue, and profit for shareholders. Nearly every year there are rumors and rumblings of weak iPhone sales. Apple usually proves these rumors and rumblings wrong, sometimes by the narrowest of margins. This year was no different, the rumors and rumblings of weak iPhone sales still came and we’ve all been waiting for Apple’s reaction.
Well, wait no longer. In an interview with CNBC, CEO Tim Cook has indeed confirmed that Apple is experiencing weak iPhone sales. This has some investors worried that Apple’s flagship device has lost its mojo. In a letter to company shareholders, Cook says revenue for the fourth quarter fell well below company projections.
Analysts and Apple had been expecting a revenue pull of $91.3 billion but will miss the mark by 9%. Fourth-quarter revenue is expected to be more around $84 billion. Cook blames weak iPhone sales on the lack of sales in China. The
There is also the factor of the tensions between China and the United States as President Trump has imposed tariffs on some Chinese goods, which does not include the iPhone.
China’s “economy began to slow there for the second half,” Cook said during an interview with CNBC on Wednesday afternoon. “The trade tensions between the United States and China put additional pressure on their economy.”
Cook also understands that many customers are just skipping the iPhone due to its astronomical price tag which starts at $1,000USD. Cook says Apple has a plan to combat these weak iPhone sales. The company plans on expanding its “financing plans and build upon its recent efforts to make it easier to trade in older models at its stores.”
It will be interesting to see how Apple works its way out of this, if they can. The company has been able to wriggle out of such spots in the past but they do have a lot of cards stacked against them.Source: ABCNews