wooden_ships wrote:
Wow, where to begin?
Apple announced sales for Q4 would fall far short of forecasted earning due to slow sales in China. Tim Cook cited several contributing factors but the most impactful is the trade war which is causing uncertainty for all companies dependent on sales in China. That's why the market plunged.
(snip)
That is totally incorrect. Tim Cook, in his letter to investors of January 2, 2019 talked about 4 factors that affected the sales:
1- Timing of iPhone launches. They tripped over their own weenie and clobbered their own sales cycle. That's the most important factor.
2- Strong US dollar. Yes, the US economy is very strong. MAGA.
3- Apple launched an "unprecedented number of new products" and got hit in the supply chain. Again, they clobbered themselves by announcing products which they could not get to market in sufficient numbers.
4- Economic weakness in some merging markets. No kidding; not everyone can afford a $1000 phone every couple of years. The new iPhones are not enough better than the earlier ones to cause people absolutely want these new phones. It's the same thing that happened with desktops at the turn of the millennium; at some point, the hardware is no longer struggling under the weight of the software so then whereas before you had to upgrade every two years, now it's 5 or 6 years or more. The same thing is happening with the smartphones.
Also, the battery issue is much more important than most people realize. Folks are loathe to have to get a new iPhone just because the battery on their current iPhone is dying. Apple took it on the chin when it was revealed they deliberately slowed down their iPhones over time to push people to upgrade. They had to get a program going where you could get the battery changed for very little money. That hurt them.
Every single battery they replaced for $29 meant the loss of a $1000 new phone sale.
He does mention the economy in China is slowing down and is being affected by the trade disputes, he does mention the fact most people now have to buy their phones rather than get it subsidized by the carriers via monthly fees and spending $1000 just because your battery is wearing out is not easy to justify for many, and probably most people all over the world. Apple decided to only sell high-end phones and that segment of the market is limited and quite saturated.
This is something that Steve Jobs would have seen but then again, Apple was Steve Jobs and Steve Jobs was Apple. As long as Tim Cook is more interested being a SJW than a the CEO of Apple, that will affect Apple.
I wish Apple well, I do not use their products but I do want them to resume doing well and concentrate on products and customers and be innovators or at least keep up with the rest of the industry.