Mobile

Apple could lose $9 billion due to weak iPhone sales, admits Tim Cook

Apple CEO Tim Cook has published a letter to Apple investors, warning them about lower than expected iPhone sales. Apple is now also dropping its revenue projections by $9 billion to account for these lower sales.

Talking about its revised revenues in its letter to investors, Tim Cook stated following revised projections:

  • Revenue of approximately $84 billion
  • Gross margin of approximately 38 percent
  • Operating expenses of approximately $8.7 billion
  • Other income/(expense) of approximately $550 million
  • Tax rate of approximately 16.5 percent before discrete items

The new projected revenue for Q1 is now $9 billion less than its earlier projection of $93 billion. The reasons given by Tim Cook for this revised projection include weaker sales for iPhone in China due to trade restrictions put in by Donald Trump:

“Lower than anticipated iPhone revenue, primarily in Greater China, accounts for all of our revenue shortfalls to our guidance and for much more than our entire year-over-year revenue decline. In fact, categories outside of iPhone (Services, Mac, iPad, Wearables/Home/Accessories) combined to grow almost 19 percent year-over-year.”

It’s no secret that iPhone sales are down, not only in the China region, but overall people have been less eager to jump on the iPhone XS and XR wagon. The reason could be as simple as people not wanting to spill out north of $1,000 for an incremental update, as to something more fundamentally wrong about the design choices that Apple has taken, alienating people who dislike the new notch and gesture navigation system.

The year 2019 is the tock year in the tick-tock cycle usually followed by Apple, so we expect more innovation and drastic improvements for iPhone 11, hopefully, rejuvenating interest in new iPhones released this year.

Sponsored
Shaoor Munir

I am passionate about technology, hardware and the future of both of them together. Email: shaoor@techjuice.pk

Share
Published by
Shaoor Munir

Recent Posts

PayPal Resolves Global Outage Impacting Thousands

PayPal, the global payment processing company, announced on Friday that it had successfully resolved a…

2 mins ago

7,300 Teaching Interns Hired Across Punjab

LAHORE: Punjab government colleges have completed the recruitment of 7,354 teaching interns. The Higher Education…

35 mins ago

Pakistani Engineers To Get Free AI Training from PEC

The Pakistan Engineering Council (PEC) is launching a free six-week online training program on Generative…

55 mins ago

VPN Ban Could Cost Pakistan’s IT Industry $1 Billion, Warns P@SHA

The Pakistan Software Houses Association (P@SHA) has raised alarms about the severe impact of the…

14 hours ago

WhatsApp Trials Group Chat Mentions in the Latest Status Update Feature

WhatsApp is rolling out a new feature in its latest Android beta version, allowing users…

14 hours ago

PTA Chairman Confirms No Orders for Mobile Service Shutdown

ISLAMABAD: Chairman of the Pakistan Telecommunication Authority (PTA), Major General (retd) Hafeez-ur-Rehman, confirmed that no…

15 hours ago