Thursday May 04, 2017

Apple iPhone Sales are Down Due to Reports of Future Models According to CEO

Apple CEO Time Cook is blaming the lower than expected iPhone sales on speculation generated about new future models. Investors are extremely confident that the major iPhone redesign due later this year will spur sales. "We’re seeing what we believe to be a pause in purchases of iPhone, which we believe are due to the earlier and much more frequent reports about future iPhones," Apple Chief Executive Officer Tim Cook said during a conference call with analysts.

Apple is pushing their services such as the iCloud, iTunes, etc to a 18% revenue increase of $7.04 billion for the quarter. This is in contrast to the falling China revenue of 14% due to competition from phones created directly by local Chinese firms. Also the Samsung Galaxy S8 launched in April and had strong sales whereas last year the Galaxy Note 7 was in the midst of a safety recall that Apple capitalized on.

"Chinese vendors such as Huawei, Oppo and Vivo continue to make life really hard for Apple in the region," John Butler, a Bloomberg Intelligence analyst, said. "We expect our performance in China to continue to improve as we go through the year," Chief Financial Officer Luca Maestri said in an interview. Cook has repeatedly sought to highlight Apple’s services, the fastest growing part of the company last year. Sales of offerings like iCloud, the App Store and Apple Music grew 18 percent to $7.04 billion in the quarter. Maestri said the company aims to double annual services revenue by 2020.