Tim Cook to Address Q1 Earnings Concerns at All-Hands Meeting With Apple Staff

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

  1. MacRumors macrumors bot

    MacRumors

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    Apple CEO Tim Cook today plans to hold an "all-hands meeting" with employees to alleviate any fears surrounding the company's revision to its Q1 2019 earnings expectations.

    According to Bloomberg's Mark Gurman, who spoke to a person familiar with the matter, Cook plans to address concerns from Apple staff by taking questions from workers during Thursday's meeting.

    Further details on the meeting have yet to be disclosed, but Cook will likely seek to dampen internal worries about what the revised earnings guidance means for the company's plans as it gears up for another year.

    In his earnings call on Wednesday, Cook revealed that Apple expected to end the first quarter of 2019 with $84 billion in revenue, which is down over 7 percent from the $89 billion to $93 billion forecast the company predicted at the end of the last fiscal quarter 2018.

    In interview with CNBC, Cook said trade tensions with the U.S. put additional pressure on the Chinese economy, which led to less traffic in stores and lower sales. He also blamed fewer carrier subsidies, a stronger dollar, and the $29 battery replacement program, suggesting that those factors led to fewer iPhone upgrades than expected.

    Writing for Bloomberg, Gurman claims that stagnating smartphone sales mean Apple needs to look beyond the iPhone as its core product, but that the company shouldn't rely on its AirPods or Apple Watch lines because they're exclusively tied to iPhone use.

    Likewise, Apple's services business is providing an increasingly sizable income, but the long-term success of its services also relies heavily on iPhone usage. In other words, Apple may need to look at new product categories if it is to successully reverse the damage of its iPhone sales problem, which is currently limited to China. The issue however is that potential major launches like AR-glasses and self-driving car technology still seem years away.
    Apple plans to discuss its final earnings results during the company's first quarter 2019 conference call on Tuesday, January 29.

    Article Link: Tim Cook to Address Q1 Earnings Concerns at All-Hands Meeting With Apple Staff
     
  2. Chrjy macrumors 6502a

    Chrjy

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    #2
    Alternatively they could reduce the price of their product lines to increase sales. It would still be a premium brand if they dropped prices by $100 or so!

    Having said that, I wish I was concerned over only $84 billion revenue in a single quarter :eek:
     
  3. and 4096 others like this macrumors member

    and 4096 others like this

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    #3
    During the meeting Tim is gonna explain what is going on by singing "I want it all" by Queen.
     
  4. ljonesj macrumors 6502a

    ljonesj

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    #4
    My thoughts exactly cook is blaming everything on other things but the prices of the products is what is hurting them I’d like to get a new Mac mini but I can build the same machine for about 500 if the would take it to about 600 drop the price to close to computing they would see a flood of money
     
  5. steggerwoof macrumors member

    steggerwoof

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    #5
    The products are too expensive and given there are now very suitable alternatives from other manufacturers at a fraction of the price it's showing that customers are voting with their feet.
     
  6. sirozha, Jan 3, 2019
    Last edited by a moderator: Jan 3, 2019

    sirozha macrumors 6502a

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    #6
    This was the first warning shot over the bow for Apple. The second shot may be tariffs on Apple's phones made in China, which will make these phones unaffordable for most Americans. Is Tim Cook prepared to move production out of China?

    Tim was warned of this at the end of 2016. What has Tim done in two years since? I know hew blew over $100 billon on stock buybacks. Did he create a contingency plan?

    I've been warning of this happening since 2016. Why could I see this coming and Tim Cook could not?

    Tim Cook has got to go. Or, #TimCookGottaGo. Here, my first ever hashtag for what it's worth.

    Enough damage done, Tim. Time to retire.
     
  7. AngstyKylo macrumors member

    AngstyKylo

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    #7
    I think when/if Apple finally release their car or AR glasses that can effectively kill off the smartphone they'll be fine. If someone else beats them to it, they're in trouble.
     
  8. Morgenland, Jan 3, 2019
    Last edited: Jan 3, 2019

    Morgenland macrumors 6502

    Morgenland

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    Cook said trade tensions with the U.S. put additional pressure on the Chinese economy, which led to less traffic in stores and lower sales. He also blamed fewer carrier subsidies, a stronger dollar, and the $29 battery replacement program, suggesting that those factors led to fewer iPhone upgrades than expected.

    OK, whoever increases such defocusing interpretations cannot lead a business or has amateurish consultants in house. Reality is the only medicine.

    With a heavy heart I sold my shares.

    All of them.
     
  9. sirozha macrumors 6502a

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    #9
    It's impossible to build a car without any information ever leaking. It's a big undertaking. I don't think there is an Apple Car in the pipeline. If there is one, today is the day to give us a little sneak peak.
     
  10. Bug-Creator macrumors 6502

    Bug-Creator

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    #10
    Sure we all would like prices to drop, and maybe it is what is need to sustain Apple in the long run, but.....

    Slicing 100$ of the iPhones and 200$ of every Mac would severely cut margins which I doubt would be made up by higher sales.
    So it would make Apple "bigger" but earnings would still stagnate.

    I did buy an iXR last year for the simple fact that my 5 just wasn't up to it anymore. Won't buy another phone till 2023 (maybe even later) no matter how far prices drop.
     
  11. Falhófnir macrumors 68030

    Falhófnir

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    #12
    Yep, Apple's problem in a nutshell. It's still very much a one trick pony whose relevance is tied to the continuing success of the iPhone. In fact, as yet perhaps not a 'problem' but certainly a weakness, and one aggravated by the fact that they are currently milking this very important product line for profit rather than continuing to nurture it and try to keep it growing...
     
  12. e1me5 macrumors regular

    e1me5

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    #13
    When you make your devices bulletproof you should expect people not to be upgrading so often. Which is a good thing for us!
     
  13. rmoliv macrumors 6502a

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  14. PSCConMP macrumors newbie

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    #15
    Overpriced, no-innovation products. That's all Tim had to say.
     
  15. Chrjy, Jan 3, 2019
    Last edited: Jan 3, 2019

    Chrjy macrumors 6502a

    Chrjy

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    #16
    You make a good point. I don't think new tech is as exciting as it once was....I'm not sure if that's because nothing overly exciting has come out in a while or as consumers we are just getting used to it.
    I used to upgrade my iPhone every year but my last update was from an iPhone 6 to the X...I don't see myself upgrading anytime soon.
     
  16. MaciekP macrumors newbie

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    #17
    Apple arrogance, crazy prices, removed headphone jack, bend gate, incremental small innovations only. New Iphone 6S 32GB costs now 30% of a new Iphone Xs 64GB and works very well on iOS 12 and is just fine with a great price. 50% of my friends moved from Iphone do Android recently. All of this is just a smoke screen not a real reason...
     
  17. sirozha macrumors 6502a

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    #18
    Yeah, it was the headphone jack the broke the camel's back.
     
  18. Wig321 macrumors member

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    #19
    It takes courage to keep increasing profit margins. Every product is overpriced.
     
  19. NIKKG macrumors 6502

    NIKKG

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    #20
    This is what happens when you hire a SJW as a leader of a tech company.
     
  20. Mydel macrumors 6502a

    Mydel

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    #21
    It was not unexpected. Pricing yourself out of the market sometimes leads to drop in sales... And if they want to grow services, AppleWatch etc they need to a lot of customers with iPhones and Macs. Mac Mini is overpriced like hell for what it is. iPhones I wont even comment...
    iOS on iPads needs revision ASAP if they want to have decent sales on that amazing hardware. And really if it's bent...replace it and don't say its OK haha
     
  21. DeadSeaMac macrumors member

    DeadSeaMac

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    #22
    Apple had their chance to integrate home theatre, home kit functionality, and AR/VR experiences with Apple original programing, Apple Music and the App Store into one beautiful Apple product that could integrate all your Apple devices - the Apple TV. Cook dropped the ball on this product and the "possible" future of Apple because he was completely fixated on the iPhone.
     
  22. Khedron, Jan 3, 2019
    Last edited: Jan 3, 2019

    Khedron macrumors 6502a

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    #23
    Tim's greed has killed the ecosystem

    If iPhones weren't so overpriced maybe I'd still have one, plus a Watch and some AirPods to go with it

    Maybe I'd then also be more inclined to replace my old MacBook with another Apple machine, and wouldn't have cancelled my iCloud storage plan

    It all falls apart quickly when offensively high prices encourage you to look around at alternatives, and then Apple arbitrarily punishes users for not being 100% Apple

    The HomePod is the perfect example of Tim. A great idea but it's a non-starter even before looking at the price because Tim wanted to lock down the Bluetooth to punish all non-iOS device users.
     
  23. sirozha, Jan 3, 2019
    Last edited by a moderator: Jan 3, 2019

    sirozha macrumors 6502a

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    #25
    Hey, we got the rainbow watch faces and rainbow watch bands. Isn't that dandy?
     

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