Tim Cook is reportedly hosting an all-hands meeting with every Apple employee today about the revelations regarding stalling iPhone sales.
The news caused Apple shares to plummet in after-hours trading, taking some Apple suppliers with it. As part of the meeting, Cook will spell out what the news means, and take questions from employees.
Cook’s revelation about the fact that the latest iPhones aren’t selling to expectations — particularly in China — caused the company to revise its earnings. The reduced earnings cut the amount of money Apple expected to rake in for the holiday quarter by $9 billion.
“This is probably one of the hardest things Tim Cook has had to do as CEO, putting out that letter today,” Michael Gartenberg, a former Apple marketing executive, told Bloomberg after the release of yesterday’s letter. Wedbush Securities analyst Daniel Ives called it, “the most defining moment of Cook’s career.”
What happens next is going to be interesting to watch. Apple will be keen to prove that its disappointing quarterly earnings are not part of a wider trend. We may also see reduced iPhone prices, more emphasis on Apple’s other products, and potentially a revised strategy that focuses less on the unpredictable China.
What do you expect to be the upshot of yesterday’s revelations? Let us know your thoughts in the comments below.
Source: Twitter/Mark Gurman