The last couple of launches, Apple hasn’t seen the kind of success it would have been expecting. Tim Cook, the CEO addressed the investors and employees by a means of letters. He did reveal that things aren’t exactly well with Apple’s most popular product, the iPhone. But Cook also highlighted a lot of positives and yet prepared people for lower revenue for the first quarter of the year. Here are the top points that Tim Cook’s letters spoke
The expected total revenue is around $84 billion, from the three newly launched phone, the XS, XS Max, and XR. These figures are approximately $9 billion less than the expected revenue and the reason for the same is the cold response that these phones got in the market.
Cook stated that the battery replacement programme that Apple was running till December 31st 2018 which allowed people to replace their batteries at lower rates is also one of the reasons which stopped people from buying a new iPhone.
Despite slow sales, Tim revealed that the company expects to end the quarter with $130 billion in net cash.
Cook accepted that the company was expecting existing iPhone users to upgrade to the new phones, which did not happen.
Boosting the morale of the employees Tim said, “We are tremendously proud of the innovations we’re delivering to our customers with iPhone XR, iPhone XS, and iPhone XS Max. These are, without a doubt, the best iPhones we’ve ever made.”
Countries like the US, Canada, Mexico, Germany, Italy, Germany, Korea, and Vietnam are all set to hit new revenue records for Apple
Apple is all set to make better offers to its customers in terms of finance options and exchange policy as part of correcting its paths.
Overall, the Chinese economy has shown less growth and Cook said, “We believe the economic environment in China has been further impacted by rising trade tensions with the United States.”
Cook said in his note to the investors, “In fact, most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac, and iPad.”
Tim highlighted that the services division of Apple which includes Music, App Store, iTunes among others generated over $10.8 billion in revenue during the quarter.
The wearables business also grew by close to 50 percent year-on-year for Apple. Cook said that both the Watch and AirPods were popular.
The installed base of active Apple devices grew by more than 100 million units in the last 12 months.
In his note to Apple employees, Cook said that Apple needs to learn from this opportunity and focus on the company mission: “delivering the best products on earth for our customers and providing them with an unmatched level of service.”
