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

[Malcster]

So whilst it's true to say China is slumping, they are still buying bucket loads of smartphones - they're just not buying iPhones.

Xiaomi - 100million smartphones in 2018 (https://techcrunch.com/2018/10/25/xiaomi-100-million-sales/)
Huawei - 200million smartphones in 2018 (https://www.digitaltrends.com/mobile/huawei-2018-sales-news/)

So its a mix of all really i think, Price, Longer handset retention but also now totally key and where chinese manufacturers are really catching up quickly.. really decent alternative hardware options.

 

[BruceEBonus]

Ironically the wall subject could also apply to Apple’s Walled Garden. IOS was and still is (just) a superior OS. But the hardware is still on catchup. Big time. And the problem is that people have started looking over the wall and are thinking “Why is Apple asking much more for less? “ Answer: Because they can. Or rather, could. It was inevitable they’d be rumbled. And a miracle how they’ve managed to do as well as they have for so long. Now the curtain has been pulled back it has revealed that they’re no longer the market leader by a long chalk. Customers don’t have the cash or desire to pander to such micro upgrades of older tech at futuristic prices so are voting with their feet. The danger is it could snowball big time once word gets round and folks jump a sinking ship. Apart from that, I think Tim is doing a cracking job. Thanks!

 

[Octoberist]

There is a reason for the price increases. We know this because the average product margin is unchanged from previous iPhones. The phones are much more expensive to make.

These are phones you’re supposed to keep for three to four years, which makes sense in a mature smartphone market.

If you’re praying to Apple to drop prices so you can upgrade your phone every year, get over it. Phones are like Macs now. Buy it, take care of it, upgrade later.

 

[Piggie]

Tim sounds exactly like my boss.
It's everyone else's fault, never his.
He does nothing wrong, other people are the problem.

Perhaps my boss should meet Tim they'd get on well

 

[cdarlington1]

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.

Nah. Tim is doing an excellent job. I agree they could drop prices a little considering we are entering a recession but Apple has a bucket ton of money and they are gonna be fine to ride this out.

 

[DeepIn2U]

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.

He [Cook] 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.

Cook is blaming fewer carrier subsidies?! Really??!!! Lol the subsidies are an agreement between Apple and the carriers and the carriers are not bending over backwards anymore for Apple demands especially for units not sold and still holding stock each quarter. Either Apple has to be more open in such negotiations or soon enough end up loosing carrier partnerships - anyone recall how many carriers a SonyEricsson or Sony would partner with in each region?! Look at them now!!

Carriers are making a LOT more from Android partners and at a faster rate.

Apple’s iPhone as much as I love it and will not be switching in the foreseeable future (even if it ends up like BB10), is no ingerir the best smartphone offering: price, feature for feature, or capabilities on its on.

Familiarity, cost and frustration of switching, and accessories or synergy with other Apple products is the ONLY reason anyone including myself is staying with Apple!

 

[Jerus]

He should resign. Spends more time sending emails about fluff and rainbows than actually running the company.

Be careful what you wish for.

I know many what Tim to resign, but who will take over?

Apples next leader is probably on this page: https://www.apple.com/leadership/

Knowing that Apple is starting to see them selves more and more like a "service" company we'll just end up with
Eddy Cue as CEO. For a lot of people that is a scary thought.
He seems to be a survivor and I'm not really sure what he actually does.
Many of the others have a clear set of skills we know what Johnny, Tim, Craig etc are good at.
But Eddy just seems to move around, he's probably great at something, I just don't know what it is.

 

[DeepIn2U]

Just move everything from China to India. Accomplishes two things at once.

LMAO!

Volumes and GDP is far too low to transition in the current climate of India. Assemblies are being moved to Taiwan (much cheaper than China and more receptacle than India. India’s Modi loathes Apple)! Catch up on the he news

Or bring it to USA and support Americans for a change.

Want proof your idea is silly (bringing production to USA); just look at the Mac Pro 2013 model. Oh it’s doing fantastic in terms of sales and cost.

 

[I7guy]

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.

If everyday you say there will be an earthquake in San Francisco at some point you would be correct and brag about how you predicted it.

Just admit your knowledge about internal Apple business projections is zero and everything is a guess. (From your post though people can be right at least once even if accidental)

 

[nwcs]

Funny to think of people being worried for a company with billions in cash holdings and still making billions in profit. It’s just that they are making a few percent less billions in profit. It’s impossible for a company to never have a correction, never have a down year, never fail to have a YOY increase in everything. Wake me when they go negative in profit for the first time.

 

[DeepIn2U]

Ironically the wall subject could also apply to Apple’s Walled Garden. IOS was and still is (just) a superior OS. But the hardware is still on catchup. Big time. And the problem is that people have started looking over the wall and are thinking “Why is Apple asking much more for less? “ Answer: Because they can. Or rather, could. It was inevitable they’d be rumbled. And a miracle how they’ve managed to do as well as they have for so long. Now the curtain has been pulled back it has revealed that they’re no longer the market leader by a long chalk. Customers don’t have the cash or desire to pander to such micro upgrades of older tech at futuristic prices so are voting with their feet. The danger is it could snowball big time once word gets round and folks jump a sinking ship. Apart from that, I think Tim is doing a cracking job. Thanks!

Sorry I beg to differ.

The hardest is sweet: iPhone X/XS models and 2018 iPad Pro!

The iOS is lacking major progress!!
Little feature tweaks and cpu boosted speeds of use. Yet why is Samsung able to deliver Linux on Dex on Android and our iPhones still much use ATV to project to a Tv? Why can I not have full 100% navigation on iOS using an zapper Mouse or TrackPad?! Why is my iPhone 8, and previous 7 and the X/XS not able to use the full iOS in landscape mode? Why is only the Max or Plus models capable is this? .5-1.2” really makes it that different?!!

Superior?! Not sure about that anymore because we’re seeing far too many advancements on the other side. Poorly implemented but it’s being pushed. Apple like always is purposely holding users back in the OS because they want to get things done right.

 

[scottsjack]

Well Tim. How about reasonable prices, headphone jacks, a Mac midi, a new Time Capsule and a host of other items you've dropped.

 

[CE3]

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

They need to lower prices a lot more than $100 for many of their products. The prices have been steadily rising every year, and so are the number of compromises and hoops you have to jump through in order to stay in their ecosystem. How long Apple can keep gouging their customers like this is anyone’s guess, but it’s not sustainable and will not last.

I’m actually happy with the Apple products I currently own, but I’m only ever mildly tempted to upgrade to newer products like the Face ID iPhones and iPads, which aren’t appealing to me at all.

Yesterday I was looking at MacBook configurations, and the prices for anything with decent specs were ridiculously high for a setup that requires me to use adapters—usb-c still hasn’t taken over yet—a subpar keyboard, and no MagSafe. The last great MacBooks came out in 2015.

 

[akbarali.ch]

Having said that, I wish I was concerned over only $84 billion revenue in a single quarter

HAHA, seriously, too much concern for only making 84 billion and not 89 billion. I wonder other companies are worrying about?

Prices have to come down for sure, my brother bought Macbook air 2017 in 2017 with cashback of effective price of Rs. 45K. The current gen Macbook Air 2018 is Rs. 115K. Just leaped beyond our reach.

 

[x-evil-x]

does the dollar statement mean he thinks because pricing of all the products is one reason sales are bad?
Funny thing he mentioned because of all the lawsuits with the battery issues and people thinking they're phones where slowing down(and their battery software update) that less people are upgrading now.
Thats one thing that I didn't take to nicely to. A company that could of came forward and said phones where shutting off early and slowing down because the battery is going bad. But NOOOO they didnt come out with anything for years because people thought their phones just started aging and going bad.
They really need to start thinking about the customers first and catering to them. Its one thing they have lost. Not milking people for all they are worth.

 

[DipDog3]

People don’t want a $1,500 smartphone!!!

 

[pward]

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

It's not the absolute amount that's important here; the problem is that Apple had told the Street and investors that revenue would be $5bn higher.

 

[rplat]

Cook was riding on Job's back and now that ride is over.

 

[PBG4 Dude]

So whilst it's true to say China is slumping, they are still buying bucket loads of smartphones - they're just not buying iPhones.

Xiaomi - 100million smartphones in 2018 (https://techcrunch.com/2018/10/25/xiaomi-100-million-sales/)
Huawei - 200million smartphones in 2018 (https://www.digitaltrends.com/mobile/huawei-2018-sales-news/)

So its a mix of all really i think, Price, Longer handset retention but also now totally key and where chinese manufacturers are really catching up quickly.. really decent alternative hardware options.

The Chinese government is telling their citizens not to buy iPhones and to buy Chinese phones. Would you want to be living in China and have an iPhone invoice dated after the government “asked” their citizens not to?

 

[MarkB786]

Tim's lack of vision and Ive's obsession with himself are starting to show their real fruit. You can iterate on the same product only for so long.

 

[dominiongamma]

Cook was riding on Job's back and now that ride is over.

What I don’t get is that people defending Apple still even when Apple admits no fault or takes no responsibility

 

[WatchFromAfar]

The Chinese government is telling their citizens not to buy iPhones and to buy Chinese phones. Would you want to be living in China and have an iPhone invoice dated after the government “asked” their citizens not to?

I don’t believe that for a second after Apple bowed down and obeyed the Chinese government by making sure all Chinese iPhone user’s iCloud data is stored on Chinese soil and is therefore under Chinese lawmakers/whims of the Government's control.

Why would the Chinese want to discourage that?

 

[PBG4 Dude]

I don’t believe that for a second after Apple bowed down and obeyed the Chinese government by making sure all Chinese iPhone user’s iCloud data is stored on Chinese soil and is therefore under Chinese lawmakers/whims of the Government's control.

Why would they want to discourage that?

Maybe you’ve heard about that little $250 billion trade dispute between the US and China? China has stopped buying US soybeans for example. Also, Meng Wanzhou‘s grandfather worked with Mao, so her arrest was the closest to an arrest of Chinese royalty as you can get (Though this is a more recent development).

 

[nt5672]

The problem is just Cook. No one believes him when he says Apple makes the best products. Why? Because Cook is more focused on politics, magazine articles, etc. and allows the announcement and release of mediocre products, some of which have not been delivered for years after announcement. He is not even self aware enough to realize how he is single handedly destroying Apple.

 

[ChrisMoBro]

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.

It’s not just the fact that prices need to be dropped, Apple have increased pricing across all product lines to a disgusting level and that’s putting people off. Few businesses have such high margins. If Apple took a 10-15% cut on their margins to lower their costs the could sell higher volumes