Watch Apple CEO Tim Cook explain unprecedented sales forecast drop in detailed interview


In a quite unprecedented move for the world's most profitable phone maker, Apple has just revised its forecast for its traditionally strong Holiday quarter, cutting its expectations for revenue by as much as $9 billion.

Apple CEO Tim Cook shared the news with investors first in a letter that you must have already seen. The gist of it is that Apple has sold less iPhones than expected and the biggest reason for the slow-down in iPhone sales is the Chinese market which is affected by a macroeconomic slowdown and the recent trade scuffle championed by President Trump.

To shed some light on the situation and calm down the ones who are worried about the future of the company, Tim Cook sat for an interview with CNBC to talk more about the challenges for the company.

Summarizing the interview, we can say that Cook remains optimistic for the Chinese market and has its focus on doing everything that Apple can do grow sales, including the much talked-about global trade-in program and other initiatives to offset the high initial cost of an iPhone. Cook also stressed that Apple has an incredibly healthy services business and many of its latest products are supply constrained, which means there is a lot of consumer interest. And yes, Cook once again mentions the battery replacement program as a reason why fewer people bought new iPhones, which we found particularly sad, as probably having people use their current phone for a longer period of time should instead be something that Apple is proud of, rather than apologetic about.

Check out the whole interview right below and feel free to share your thoughts in the comments section.


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32 Comments

1. PhoneCritic

Posts: 1345; Member since: Oct 05, 2011

Well no company stays on top forever. Again history has taught us with Nokia, RIM, IBM, Kodak, Compaq, etc.. everyone has their time. Its looks like Apples time might be up. Again I stress "Might" be up. Who knows.

6. scarface21173

Posts: 638; Member since: Aug 17, 2014

Shares down 10% today

10. Acdc1a

Posts: 470; Member since: Jan 21, 2016

Other than form factor there's just no reason to upgrade. That's Apple's biggest problem right now. If they keep increasing prices they could lose market share.

32. Deadeye37

Posts: 288; Member since: Jan 25, 2011

I doubt they'll go the way of some of those companies, but they will be a little lower for a while.

2. Man_Utd

Posts: 162; Member since: Feb 03, 2015

Hahaha... You did it to yourself. Secret slow down software, inferior products, higher prices.

3. baldilocks

Posts: 1462; Member since: Dec 14, 2008

Maybe they need Wozniak.

9. notfair

Posts: 698; Member since: Jan 30, 2017

maybe not, they need to stop being so greedy!

11. baldilocks

Posts: 1462; Member since: Dec 14, 2008

All companies and shareholders are greedy. That's why prices keep going up across all manufacturers.

18. deewinc

Posts: 455; Member since: Feb 21, 2013

The Note 9 is cheaper than Note 8's launch price.

30. scarface21173

Posts: 638; Member since: Aug 17, 2014

They crossed the line with the weak batteries and got found out. Pure greed.

20. NarutoKage14

Posts: 1306; Member since: Aug 31, 2016

They can't. Apple has stated in court that iPhones are disposable and should be upgraded every year.

4. notfair

Posts: 698; Member since: Jan 30, 2017

to be honest they deserve it but the blame should not be entirely on his shoulders, this trend of ever increasing prices on phones has to stop because people's pay is not increasing at the same rate ( i just want to say that nowadays to get a raise is almost impossible but yet everything is more expensive ), those money hunger trash people called "investors" are and will be always rich and yet they demand more and more money because they are s**t people that think they deserve everything just because they were born rich and raised with this mentality, growth as they see it now and in the foreseen future is not sustainable at all, people are getting poorer, jobs are lost to due automation (which is normal because we are living in a high developed tech society) and yet they still demand more sales and more consumerism. I really wish that this trend to stop and just release a new phone every few years and be kept well under wraps so that when it will be released to give us the same joy as when we waited for Christmas presents when we were kids. consumerism kills us all by destroying our planet and our future generations. they missed the "revenue by as much as $9 billion"?? what? this is f**king pocket change for the rich, go to hell.

5. zackh121556

Posts: 132; Member since: Feb 01, 2012

I have both an Android (personal) and iPhone (Work). I have an upgrade avail for the work iPhone which is the iphone 6. I work at a major company (Coca-Cola) and we do not carry anything beyond the i8 because it does they do not have fingerprint scanners which best for corporate security. If I "Upgrade" my current i6....I will lose the headphone jack and the physical home button....I would be upgrading to downgrade because the X's are not available lolol. I am not the only one with this same issue.

14. lyndon420

Posts: 6518; Member since: Jul 11, 2012

"...upgrading to downgrade..." Makes perfect sense. Earlier versions had more options and features. Take away the headphone jack and physical home button, but charge even more $ without a bigger battery to compensate? All OEM's who adopt this trend will eventually fail some in regards to hardware sales. Could be one of the main reasons we don't have safer / longer lasting battery tech yet.

7. SIGPRO

Posts: 2810; Member since: Oct 03, 2012

Bye bye fruit company, you cheat, lie and steal so you had it coming! Microsoft is now the most valuable company in the world and Google is second, fruit company slipped to the third spot!

8. SIGPRO

Posts: 2810; Member since: Oct 03, 2012

Meant the fourth spot.

12. Tipus

Posts: 801; Member since: Sep 30, 2016

You know things are serious, when CEO of the company has to explain why sales are dropping :)

13. guest

Posts: 370; Member since: Jun 13, 2012

I guess they can’t coast on Jobs’ innovation anymore. Turns out charging a lot of money for stuff people didn’t ask for isn’t a winning formula.

15. someguy2261

Posts: 248; Member since: Feb 12, 2016

So many things I could comment on , he's "it's very important to people to be able to transfer their content from old device to new one ", how about sd card I've been doing it for year take 2 mins . And stock buy backs hahaha apple is going to lose a lot of that 130 billion they hold if they buy thier stocks back. They about lose on all fronts with this jack ass leading the way , he is no Steve Jobs.

16. baldilocks

Posts: 1462; Member since: Dec 14, 2008

The "SD card phone setup" comment makes no sense anywhere here in this conversation. Just saying.

22. someguy2261

Posts: 248; Member since: Feb 12, 2016

Can you elaborate? Why it doesn't makes senes? Would be nice.

26. midan

Posts: 2585; Member since: Oct 09, 2017

Because propably you don't go to stores and ask can i transfer my old stuff to new device. That comment was about to making it very easy for average users to transfer their stuff. It couldn't be easier what it is with iOS devices when you transfer everything from your old phone to new phone. Only thing what you need is time, device is doing all that for you automaticly and your new phone is just like your old phone, everything safe.

17. midan

Posts: 2585; Member since: Oct 09, 2017

Strategic_developer, listen very carefully from 10:35 > even in China were iPhone is strugling appstore set a new record. Apple music hit a new record, Apple pay hit a new record, icloud hit a new record. And all that with lower iPhone sales ;) He explains it just like me, install base is growing not getting smaller. It just shows that people aren't leaving iPhone when they aren't upgrading they just keep a device longer and new iPhone users keeping the services growing.

19. Vancetastic

Posts: 846; Member since: May 17, 2017

I appreciate that you’re spinning so hard that you’re likely nauseous, but it’s ok to admit that Apple can have a not-so-great quarter, due to some questionable decisions. They will be OK, I promise!

21. Back_from_beyond

Posts: 1240; Member since: Sep 04, 2015

But for a company that primarily makes its big profits from selling those iPhones that are now selling less, the install base isn't growing, it's stagnating if not shrinking. Those that hold on to their iPhone may spend more money in keeping it, but it doesn't offset the money lost by less iPhone sales.

23. Vancetastic

Posts: 846; Member since: May 17, 2017

That’s something they’ll have to figure out for the long term, unless the business model changes completely, something BlackBerry learned too late, for example.

25. midan

Posts: 2585; Member since: Oct 09, 2017

Tim just said that install base is growing and that's why even with lower sales their services are doing so well even in China.

24. mootu

Posts: 1421; Member since: Mar 16, 2017

You are full of it, only a week ago you were linking your usual mixpanel graphs stating that iPhone sales were fine, yet in that interview Timmy boy states that they missed the mark by up to 50%. This is disastrous for Apple the companys worth has dropped almost $400 Billion since november, even after being propped by a $100 Billion share buyback (and he's talking of more). The last 24 hours drop in shares ($70 billion) has just almost wiped out the last quarters profits. Lil' Tim is on Tv talking about service revenues for one reason Damage Control, is it going to work?, we will see over the next few days.

27. cncrim

Posts: 1573; Member since: Aug 15, 2011

Innovation Apple. Can’t just make screen bigger and slap on luxury price.

28. w159148

Posts: 19; Member since: Jan 02, 2018

Well, if you listen carefully, it's not that Apple's dying, it's that people aren't upgrading which has two reasons: 1- iPhones lasting longer due to updates 2- Price. The price is what's keeping newcomers from buying an iPhone, go a bit reasonable, Apple. Around 800-900 would be good enough with a base storage of 64 GB and then bump it to 999$ or 1025$ for the 128/256 GB.

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