Biting into Apple: The Giant’s Revenues Fall

The worm has gotten into Apple, and is feasting with some consistency.  Revenue has fallen. Chief executive Tim Cook is cranky.  The celebrated front of Apple’s wealth – the iPhone with its range of glittering models – has not done as well as he would have hoped.  Dreams of conquering Cathay (or, in modern terms, the Chinese market) have not quite materialised.

In a letter to Apple’s investors, Cook explained that “our revenue will be lower than our original guidance for the quarter, with other items remaining broadly in line with our guidance.”  This somewhat optimistic assessment came with the heavily stressed caveat: “While it will be a number of weeks before we complete and report our final results, we wanted to get some preliminary information to you now.  Our final results may differ somewhat from these preliminary estimates.”

The reasons outlined were various, but Cook, in language designed to obfuscate with concealing woods for self-evident trees, suggested that the launches of various iPhone types would “affect our year-to-year compares.” That said, it “played out broadly in line with our expectations.”  While Cook gives the impression of omniscience, he is far from convincing.  Why go for the “unprecedented number of new products to ramp”, resulting in “supply constraints” which led to limiting “our sales of certain products during Q1 [the first quarter]”?  Such is the nature of the credo.

Where matters were…

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