Apple iPhone Sales Miss The Mark, Share Value Plummets | The iPhone 6 News Blog

Apple iPhone Sales Miss The Mark, Share Value Plummets

Posted by Michael Nace on Tuesday Jan 28, 2014 Under Apple News

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With Apple’s first-ever gambit to co-release two new iPhones in the same year, one would have expected that the recent iPhone sales numbers would have once again smashed previous records. However, in a stunning reversal of expectations, Apple has posted a rare negative earnings report for its flagship smartphone, which in turn have sent Apple shares reeling in today’s trading (down 7.8% in active trading at the time of this writing).

According to an article on the Wall Street Journal, Apple “sold 51 million iPhones in its fiscal first quarter ended Dec. 28, up 7% from the year-ago period, after the company introduced two new models in September. Sales of iPhones, however, fell short of analysts’ expectations for 55 million units. In North America, iPhone sales fell, Mr. Cook said.” While it may be easy for consumers to forgive coming up short 4 million iPhones in sales expectations after managing to sell 51 million in the first fiscal quarter, Wall Street rewards the tea leaves on this sort of thing, and they see the failed iPhone sales as yet another sign that Apple may in fact be waning as product leader in the mobile market.

Now may not be the time for the tech community to hammer the nails into Cupertino’s coffin; after all, the company suffered humiliatingly bad products and performance in the marketplace before, only to emerge stronger, more creative, and more competitive. But that was back when they had a guy named Steve Jobs at the helm. Now, with the likes of Apple CEO Tim Cook, shareholders and Apple enthusiasts alike are being treated to damage control messaging that sounds less like the inspired proclamations of an inspired visionary, and more like someone managing the decline. ”Our objective has always been to make the best, not the most,” said Apple Chief Executive Tim Cook on a conference call with analysts.

That statement is not only pathetic, it is also bullshit.



For the CEO of the largest, most solvent, most relevant consumer technology company on the planet to shrug his shoulders to investors and argue that Apple never thought itself as more than what amounts to a “boutique” company is an insult to all of our intelligences. And together, our intelligences are pretty average.

Apple’s object is to make — and sell — the most smartphones. In the past, they did so by making them the best. Now, they are clearly not the best. By all means, they are still premium smartphones, but techies are quick to point out that Apple stopped being thought leaders when it comes to mobile innovation, and they have balked at making truly low-cost mobile devices. I have argued since its launch that the iPhone 5C was a cynical product for Apple to release, designed to discontinue the better-valued iPhone 5 and essentially become a purposeful non-seller. With these new failed iPhone sales, I believe that my theory is proven true, since you cannot beat the Street’s estimates with follies like the 5C as part of your marketing strategy.

At some point, the rest of Appledom has to get behind me and the few others who aren’t afraid to say it: Tim Cook has to go. He has not done a good job with the company since he took over, beginning with Apple Maps and ending (so far) with the iPhone 5C.

But don’t worry: it won’t take a petition from us to get Tim cook out of the job. A couple more missed sales expectations and the apple Board of directors will send him packing in one fell swoop.

 

Michael Nace

Michael Nace is the Publisher of the iPhone 6 News Blog. He began writing about the iPhone in 2010 with the launch of the iPhone 5 News Blog, which to date has had over 12 million visits. Michael’s posts have been syndicated on the Drudge Report, the Huffington Post, and Google News, and quoted on various leading tech websites.

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5 Responses to “Apple iPhone Sales Miss The Mark, Share Value Plummets”

  1. bisayan24 Says:

    Hi Michael! Its been days since you post the last article, I know you have other important stuff going with your life but, yes regarding the missed sales expectation you are right about Tim Cook needs to disappear! Anyways, changing a subject here a bit, What do you think of all other rumors out there as of late regarding apple new project’s about larger iphone displays specifically 4.7-4.8 and 5.5-5.7 inch? Theres has been some solid profs that they are infact making these large displays possibly 2 defferent type of iphones? And also another report that one of which could release sooner rather than later maybe around June of this year? That is all Michael. Thanks for your input in advance! Have a nice day!

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  2. George Manos Says:

    I agree.

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  3. Michael Nace Says:

    Sorry @bisayan24! Yeah, my day job has really been occupying me. But don’t worry: I’ll get back on it. I always do. :-)

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  4. Eric Says:

    Hi Michael,

    when the stock price was sub $400 early last year, I speculated that Tim Cook would be out of his job if the price was at the same level in the next year. I got a lot of comments & thumbs down over that speculation at the time. Thankfully, the stock has appreciated significantly since then.

    I was also surprised at how earnings were received. I picked up the 32gig Ipad Air during the Holidays. I wanted to get the mini, but it was completely sold out, as was the 16 gig Ipad Air. I really thought Apple was going to crush the estimates.

    The China deal hasn’t lead to a strong uptick in demand yet. Apple needs a new strategy for growing market share in China / India, ect. I agree completely with you on the 5c, it’s a product designed not to sell. The price point only makes sense if it is designed to push people to the 5s.

    Rumors are pointing to a larger screened version for the IP6, maybe two sizes. This will be well received at the high end, but market share is important and Apple needs a starter phone in the developing world.

    Without these new phones, Apple better release something new and amazing this year, or the stock is dead money in 2014 – even with the massive buyback.

    I still love my 5s and still hold my position in the stock. I won’t upgrade this year unless there is a bigger screen for the IP6. The 4.7/4.8 rumor would be perfect for my needs. Looking forward to the summer speculation, and perhaps something new and surprising from Apple this spring.

    best regards,
    Eric

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  5. Mario Says:

    They missed the target because the China deal was too late and it was part of the original prediction. I still don’t understand why use of the words like ‘bulshit’ in your comment. Samsung and alike are a true bulshiters of the smartphone game. What have they really introduced that is groundbreaking? All they have done is copied Apple in a cheap form and bolted The Most Pathetic operating system in the universe and gave it the most pathetic name to appropriately match the product itself.

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