The strongest man in the Apple Inc. is going through some bad days. Yes, you heard correct, its Tim Cook. The reason this time is not any public controversy or his health but it’s something related to his salary. Yes folks, Cook’s salary has been cut by considerable 15% this fiscal year, the first time ever, the most probable reason is the decline in the Apple’s revenue and its operating profit. Apple’s revenue dropped by 8% to a $216 billion whereas its operating profit reduced by 16% to $60 billion. The reason is quite obvious. Its because Apple sold fewer i Phones for the first time since the device came out in 2007. Also, for the first time since 2001, i.e., launch of the iPod, revenue of Apple has decreased.
Cook didn’t had very much good time as a CEO, as the most awaited Apple’s project, i.e., Apple smartwatch, didn’t had good success, rather a disappointment. However, although of all these bad things, the salary of Cook is not that bad. Despite cut, he earned heavy $8.7 million this fiscal year but it was $1.6 million less than the previous year, i.e., $10.3 million. But all the doors have not closed yet, as the company is eagerly waiting for this month’s result and hoping for a good increase in sales as well as revenue and profit because of holiday and festive days in the month of December and January.
Top 5 Reason Why Apple Revenue is Down
- The iPhone is a great phone, which is the reason why it is so popular. It has a fast processor, a great camera and one of the best app ecosystems around, which results in a situation where people don’t upgrade an iPhone as quickly as perhaps some other phone. That problem gets exaggerated when Apple releases a ‘S’ model, because it retains the same design and only updates the internal hardware. Apple’s great service and software support also backfires in this regard as people keep their iPhones for an average of 2 years.
- Even in the case of Apple’s ‘S’ models, there have been feature additions which have been compelling and have become industry standards. With the iPhone 4S, it was the Siri, and with the iPhone 5S, it was Touch ID. Virtual assistants like Siri were quickly replicated by Google and Microsoft and in ways even bettered Apple’s solution. Similarly, after Touch ID on the iPhone 5S, almost every smartphone maker now makes phones with a fingerprint scanner. 3D touch which is a tent-pole feature of the iPhone 6S hasn’t created similar buzz. No wonder, people are not buying the new iPhones at the same rate.
- The iPad has been tanking for a couple of years. The iPad sales remained sluggish. Compared to 12.6 million iPads sold last year in Q2, Apple has just managed to sell 10.3 million iPads in Q2 of 2016. This also shows that new products like the 12.9-inch iPad Pro haven’t done much to improve things.
- Surprisingly, this time around even the sales of the Mac declined. In Q2, 2015 Apple sold 4.6 million units of Mac. This year, the number is down to 4 million. The entire PC market is in decline and Macs have bucked the trend for a couple of years, but seemingly even they aren’t immune anymore. It also doesn’t help that Apple hasn’t brought out a redesigned version of the MacBook Air, which is the most popular Mac laptop. Apple’s new machines, which include the new MacBook, haven’t reached a point where they can replace some of its older products.
- Apple has struggled with currency problems all over the world. In Russia, due to currency issues, it had to briefly stop selling its products. In India, it had a built-in buffer for foreign exchange fluctuation, and that has made India the most expensive country to buy an iPhone.
Top 5 reason refer indiatoday.intoday.in/