Just today, Apple Inc’s Tim Cook confirmed that the latest iPhones, his latest flagship phones are not selling as expected. This is his toughest challenge since taking over as CEO from the legendary Steve Jobs. He must be wondering how to take the company forward since the company’s products are no longer gaining traction.
Cook has been with the company for about seven years in the role he is occupying today and has been in various controversies. There have been concerns over tax and labour practices, failed Google Maps replacement launch and the ousting of the head of iPhone software in 2012.
He has done well with President Trump on the horizon and has been able to avoid tariffs on devices during the US-China trade war era. We can actually say that he has navigated Trump’s policies on business in and out of America.
In a recent letter to investors, the company made a cut on it holiday sales outlook by as much as $9 billion USD. Investors are to expect lesser earning at the next quarter. In view of this, the CEO will address the staff about the current situation on January 3 at a meeting which he would make use to clarify matters and take questions from Apple workers.
It is going to be the most defining moment of Cook’s career, according an analyst at Wedbush Securities.
But times had not always been like this for the CEO of Apple. Before he succeeded co-founder Jobs in 2011, he was well regarded for his supply chain mastery. He has teamed up with others to innovate new devices since then.
Cook has also benefited largely from the success of the iPhone as it generates two-thirds of the company’s sales. However, iPhones produce more revenue when accounting for services such as Apple Music and also attached devices like the AirPods and Apple Watch.
The latest developments at Apple call into question Apple’s strategy of being so reliant on the device. Apple’s shares fell at about 8.5 percent in extended trading, and also its sales in Asia also declined.