Not very long ago, Tim Cook, the Chief Executive Officer of Apple – the Cupertino-based iPhone making company – reported the first quarter earnings of this year and even though several Apple products like AirPods, Apple Watch, etc., enjoyed strong sales, the most important product of the tech giant saw weak sales.
Apple reports weak quarterly results
Wall Street does not seem to mind much that the tech giant has missed expectations but we cannot ignore the earning reports of Apple products so easily. Apple – the biggest company in the world – is operating to different rules from other businesses. Last week, it was apparent when Cook partly attributed the weak iPhone sales to future products.
The Apple CEO said that there had been a pause in purchases because of earlier and much more frequent reports about future iPhones. Apparently, there is some truth in what he said – why would a consumer seriously buy an iPhone when they know there will be a better version of the phone available in a few months?
Also, it is not shocking as the Silicon Valley giant releases a new version of the iPhone every year to encourage the consumers to buy the new and upgraded iPhone instead of using the ‘old smartphone.’ As for Wall Street, it shrugged off the sales numbers of iPhone because the shares of the tech company rose 3% over the last week. The iPhone maker is still the most valuable company in the world, with a stock market value of more than £579 million or $750 billion.
Is Apple working on a new tech?
In the first three months of 2017, the Silicon Valley giant reported iPhone sales of 50.8 million, down by 1% year-on-year. However, the revenue of the tech company grew 5% to $52.9 billion that was below the analysts’ forecasts of $53.1 billion.
The financial performance of the Cupertino-based tech company is very reliant on the iPhone. The iPhone generated more than $33 billion of sales in the quarter while the ‘Other Products’ category of the Silicon Valley giant generated just $2.9 billion. The ‘Other Products’ category of Apple includes the Apple TV, iPod, the Apple Watch, Beats Products and other Apple-branded and third-party products.
According to rumors, the tech giant could already be working on a new tech, which could include 3D facial recognition, wireless charging, and a curved display.