Tim Cook Says iPhone Activations Set New Christmas Day Records in United States and Canada

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Jan 3, 2019.

  1. MacRumors macrumors bot

    MacRumors

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    In a memo to employees obtained by Bloomberg's Mark Gurman, Apple CEO Tim Cook provided additional commentary about the company's reduced revenue forecast for the first quarter of its 2019 fiscal year.

    [​IMG]

    Cook said Apple is "disappointed" that its quarterly revenue will fall up to $9 billion short of its initial guidance, entirely due to the iPhone, but touted revenue records from other product categories including the Mac, services like the App Store and iCloud, and wearables like the Apple Watch and AirPods.

    iPhone activations also set new Christmas Day records in the United States and Canada, according to Cook.

    In a letter to shareholders on Wednesday, Apple disclosed that its revenue will be lower than its original guidance for the first quarter of its 2019 fiscal year, coming in at approximately $84 billion. Apple originally guided for revenue of $89 billion to $93 billion in the quarter on November 1.

    The letter said lower than anticipated iPhone revenue, primarily in Greater China, accounts for the entire shortfall.

    In his memo, Cook said "this moment gives us an opportunity to learn and to take action," starting with an all-hands meeting with employees today at 9:30 a.m. Pacific Time at Apple's Town Hall auditorium on its Infinite Loop campus.

    The full memo:
    AAPL shares are currently down around eight percent to $145 in pre-market trading following the disappointing news.

    Article Link: Tim Cook Says iPhone Activations Set New Christmas Day Records in United States and Canada
     
  2. AnthonyG6 macrumors regular

    AnthonyG6

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  3. Amacfa macrumors 68000

    Amacfa

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    #3
    Apple has made the best phone every year since 2007. Haters will deny.

    The whole smartphone industry follows Apple like a lost child. Apple’s loss here isn’t anyone’s gain.
     
  4. Skeith macrumors member

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    #4
    And probably new lows for other markets.
     
  5. johnalan macrumors 6502

    johnalan

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    #5
    Why should they?

    The margins on iPhone are far smaller than most Android devices. Additionally, the price is the price. Don't like it don't buy it.
     
  6. SoN1NjA macrumors 68000

    SoN1NjA

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    #6
    Apple just can't determine whether it's iPhone XS or Xs ― I've seen both in multiple instances
     
  7. Kanyay Suspended

    Kanyay

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    #7
    of course it did. i bought all of my kids some iphones and i have a lot of kids. northwest, southwest (not the airline) and eastwest. i got them all the xr. kim said not to spend too much on them. i used one of them to take the selfie in my profile pic. feeling cute but might delete later idk.
     
  8. weckart macrumors 601

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    #8
    I believe you spelt larger incorrectly.
     
  9. Rogifan macrumors Core

    Rogifan

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    #9
    So maybe just maybe this is really a China problem and not [insert random Apple gripe here]?
     
  10. sinsin07, Jan 3, 2019
    Last edited: Jan 3, 2019

    sinsin07 macrumors 68040

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    #10
    Let's see how "disappointed" come September.
    Translation: We will increase prices to make up for short fall.
     
  11. Dekema2 macrumors 6502a

    Dekema2

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    #11
    Surely this is effective damage control!

    Right?
     
  12. RogerWilco macrumors 6502a

    RogerWilco

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    #12
    80% of profits from one product line, iPhone. Another big profit center in gauzy, subscription-based “services,” subject to customer cancellation on a whim. Yeah, nothing to worry about team...
     
  13. arkitect macrumors 603

    arkitect

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    #13
    Well yes, that tends to happen when you carry all your eggs in one basket.
    Hopefully this will make Apple, Inc. pay attention to other areas where they can still innovate.
     
  14. borgqueenx macrumors 65816

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  15. mdatwood macrumors 6502a

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    #15
    Did you even read the letter? They are going to hit revenue records in many markets. They hit a Christmas Day iPhone activation record. Until that changes, why would they drop prices?
     
  16. sirozha macrumors 6502a

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  17. Mescagnus macrumors regular

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    #17
    "This moment gives us an opportunity to learn and to take action, to focus on our strengths and on Apple's mission — delivering the best products on earth for our customers and providing them with an unmatched level of service."

    How about the bent iPad Pros, Tim?
     
  18. kemal macrumors 65816

    kemal

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    #18
    I am really hopeful the trade issues will sort themselves out.
     
  19. joueboy macrumors 65816

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    #19
    Hey Tim is that you? I knew it!
     
  20. sirozha macrumors 6502a

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    #20
    Why not make some cheaper phones for China and India. Set the profit margin on those phones 10% and flood those markets with cheap phones. Use the numbers to your advantage. Since they are not reporting sales numbers anymore, make a killing on the volume at a 10% profit margin.
     
  21. gsmornot macrumors 68030

    gsmornot

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    #21
    I would love to pay less but fact is, they do not have to drop the price to keep people on board. Disney gets more and more expensive each year and the parks are full. People find a way.
     
  22. genovelle macrumors 6502a

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    #22
    If they did it would only be in China. Making up for the retaliatory tarrifs and decrease in carrier subsidies that just happened to start during the trade war. Many of their main carriers are government owned agencies and removing the ability of people to pay on time has a huge impact. It’s why Apple started their own phone lease program here. While I think most go with the carrier plans, the availability of their own plan keeps the carriers from jumping ship on a whim because of influence from competitors.
     
  23. Infinite Vortex macrumors member

    Infinite Vortex

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    #23
    I'm still finding it hard to buy the "its all China" storyline. China represents approximately 25% of Apple's revenues and for 25% of your revenues to result in a 7% miss on total revenues you'd need far more than "weakness" in sales to be going on, rather, a total decimation of sales. That on top of "record activations" in North America?! Keep in mind that those record activations didn't come from the Xs/Xs Max but for the cheaper iPhone 7 & 8.

    I think there's way more that's not being said than is being said.
     
  24. 69Mustang macrumors 603

    69Mustang

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    #24
    China is a big portion of the problem, but he has laid out multiple issues that contributed to the overall decline. To focus on China sort of downplays the entirety of the message. Unfortunately, there was a confluence of issues that manifested at the same time.
     
  25. snowboarder macrumors 6502

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