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

Leave a Comment
Share
Published by
Shaoor Munir

Recent Posts

Microsoft Launches AI-Powered “Support Virtual Agent” for Xbox Users

Microsoft has launched its AI-powered “Support Virtual Agent” chatbot for Xbox Insiders in the U.S.,…

4 hours ago

Musk Says Tesla Won’t Enter Smartphone Market Unless Necessary

Android Authority recently polled its users to find out if they would purchase a Tesla…

4 hours ago

Sukkur IBA Sets Seven Conditions for Conducting MDCAT

The Secretary of the Sukkur IBA Testing Agency has formally requested urgent action from the…

4 hours ago

PSEB Opens Bidding for Nationwide e-Rozgar Centers

The Pakistan Software Export Board (PSEB) has launched a nationwide program to encourage IT startups…

5 hours ago

Google Play Services Bug Disrupts Access to Apps for Pixel Users: Here’s How to Fix It

A significant issue with Google Play Services has left many Pixel users unable to access…

5 hours ago

WhatsApp Beta Partners with Google for Innovative Image Search Feature

When it comes to Android messaging apps, WhatsApp stands out as one of the best.…

5 hours ago