Tim Cook to Address Q1 Earnings Concerns at All-Hands Meeting With Apple Staff

tim cook headshot glassesApple CEO Tim Cook today plans to hold an "all-hands meeting" with employees to alleviate any fears surrounding the company's revision to its Q1 2019 earnings expectations.

According to Bloomberg's Mark Gurman, who spoke to a person familiar with the matter, Cook plans to address concerns from Apple staff by taking questions from workers during Thursday's meeting.

Further details on the meeting have yet to be disclosed, but Cook will likely seek to dampen internal worries about what the revised earnings guidance means for the company's plans as it gears up for another year.

In his earnings call on Wednesday, Cook revealed that Apple expected to end the first quarter of 2019 with $84 billion in revenue, which is down over 7 percent from the $89 billion to $93 billion forecast the company predicted at the end of the last fiscal quarter 2018.

In interview with CNBC, Cook said trade tensions with the U.S. put additional pressure on the Chinese economy, which led to less traffic in stores and lower sales. He also blamed fewer carrier subsidies, a stronger dollar, and the $29 battery replacement program, suggesting that those factors led to fewer iPhone upgrades than expected.

Writing for Bloomberg, Gurman claims that stagnating smartphone sales mean Apple needs to look beyond the iPhone as its core product, but that the company shouldn't rely on its AirPods or Apple Watch lines because they're exclusively tied to iPhone use.

Likewise, Apple's services business is providing an increasingly sizable income, but the long-term success of its services also relies heavily on iPhone usage. In other words, Apple may need to look at new product categories if it is to successully reverse the damage of its iPhone sales problem, which is currently limited to China. The issue however is that potential major launches like AR-glasses and self-driving car technology still seem years away.

For now, it appears Apple's iPhone sales problem is China-focused. According to analyst Shannon Cross of Cross Research, as long as the problem doesn't spread to other regions, Cook can weather the storm.

"It's going to rely on understanding the supply chains, how to make sure costs are efficient and effective," which are Cook's strengths, Cross said.

Apple plans to discuss its final earnings results during the company's first quarter 2019 conference call on Tuesday, January 29.

Top Rated Comments

steggerwoof Avatar
28 months ago
The products are too expensive and given there are now very suitable alternatives from other manufacturers at a fraction of the price it's showing that customers are voting with their feet.
Score: 56 Votes (Like | Disagree)
ljonesj Avatar
28 months ago
My thoughts exactly cook is blaming everything on other things but the prices of the products is what is hurting them I’d like to get a new Mac mini but I can build the same machine for about 500 if the would take it to about 600 drop the price to close to computing they would see a flood of money
Score: 35 Votes (Like | Disagree)
MaciekP Avatar
28 months ago
Apple arrogance, crazy prices, removed headphone jack, bend gate, incremental small innovations only. New Iphone 6S 32GB costs now 30% of a new Iphone Xs 64GB and works very well on iOS 12 and is just fine with a great price. 50% of my friends moved from Iphone do Android recently. All of this is just a smoke screen not a real reason...
Score: 31 Votes (Like | Disagree)
dantastic Avatar
28 months ago
The pricing structure doesn't reflect the reality many people feel, like the price gouging on memory for instance. For me the bigger problem is that Apple are no longer making products that I want.

I want a headphone jack. I want a smaller device. I want to be able to access the file system of a USB drive from my iPad. I want a regular USB port on my MacBook. I do not want the awful touch bar. I want to see the professional software make a return (like Aperture).

I really don't feel Apple have the edge anymore and I think this is true for a lot of people. I'm glad it's affecting the bottom line, maybe this will be the much needed reality check.
Score: 30 Votes (Like | Disagree)
PSCConMP Avatar
28 months ago
Overpriced, no-innovation products. That's all Tim had to say.
Score: 28 Votes (Like | Disagree)
sirozha Avatar
28 months ago
This is a two-prong problem:
1. No serious innovation
2. Overpriced products

Apple needs to address both problems.

Tim Cook is the wrong person to lead Apple in to the future. SJ was not an engineer but he was a visionary. Tim Cook is neither an engineer nor a visionary. He is a bean counter, and he has just spilled all of his beans in a major way. There is nothing that he can contribute anymore with his boring stage appearances. Go back to Alabama, Timmy, and get a teaching job at Auburn.
Score: 27 Votes (Like | Disagree)

Top Stories

iphone 6 in hand

Apple Faces Another iPhone Lawsuit Over 'Programmed Obsolescence'

Monday March 1, 2021 6:44 am PST by
Apple faces a new class-action lawsuit that accuses it of deliberately releasing iOS updates that slowly reduce the performance of an iPhone, forcing customers to upgrade their devices. The lawsuit comes from the Portuguese Consumer Protection Agency, Deco Proteste (via Marketeer), which in a statement says that it will proceed with a case against the Cupertino tech giant because it...
PIA23764 RoverNamePlateonMars web

NASA Mars Perseverance Rover Uses Same PowerPC Chipset Found in 1998 G3 iMac

Tuesday March 2, 2021 3:21 am PST by
NASA's Perseverance rover, which recently made history landing on the surface of Mars, is powered by the same processor used in an iMac more than 23 years old. Image Credit: NASA As reported by NewScientist (via Gizmodo), the rover includes the PowerPC 750 processor, the same chip used in the G3 iMac in 1998. The main chipset is the same; however, there are differences between the...
magsafe charging brick feature

Prosser: iPhone 12 MagSafe Battery Pack to Feature Reverse Charging

Monday March 1, 2021 1:18 pm PST by
Apple is working on MagSafe-compatible battery packs that will be compatible with the iPhone 12 models, and leaker Jon Prosser today said on the Genius Bar podcast that one version of the battery pack will feature "reverse charging." According to Prosser, Apple is working on two versions of the battery packs, one that's a standard version and one that's a premium version with reverse...
rosetta 2

Rosetta May Be Removed From M1 Macs in Some Regions on macOS 11.3

Tuesday March 2, 2021 5:20 pm PST by
Installing the upcoming macOS 11.3 software update on an M1 Mac may result in Rosetta 2 being removed in one or more regions around the world. In the third beta of macOS 11.3 seeded to developers for testing today, MacRumors contributor Steve Moser uncovered new strings in the beta's code indicating that "Rosetta will be removed upon installing this update." Another new string reads "Rosetta ...
iphone 12 pro display video

iPhone 13 to Include 1TB Storage Option and LiDAR Across the Board, Says Wedbush Analyst

Monday March 1, 2021 4:00 am PST by
Apple's forthcoming iPhone 13 could include a 1TB storage option for some models and LiDAR Scanners across the entire lineup, according to a report from Wedbush analysts. In a new note to investors, seen by MacRumors, Wedbush analyst Daniel Ives said that initial Asian supply chain checks gave the firm "increased confidence" that Apple's 5G-driven product cycle would extend well into 2022,...
Apple Prefer Lightning Over USB C Feature

iPhone Sticking With Lightning Port Over USB-C for 'Foreseeable Future'

Tuesday March 2, 2021 9:32 am PST by
Apple will retain the Lightning connector on the iPhone for the "foreseeable future," with no intention of switching to USB-C, according to reliable analyst Ming-Chi Kuo. In spite of much of the industry moving toward USB-C, Apple will not be using it to replace the Lightning connector on the iPhone 13, or indeed on any iPhone model for the time being. In a note seen by MacRumors yesterday,...
iphone 12 120hz thumbnail feature

Kuo: iPhone 13 Lineup to Feature Smaller Notch and Larger Batteries, 120Hz Display for Pro Models, and More

Monday March 1, 2021 7:50 am PST by
iPhone 13 models will all feature a smaller notch, while the two Pro models will be equipped with low-power LTPO display technology for a 120Hz refresh rate, analyst Ming-Chi Kuo said today in a research note obtained by MacRumors. Subscribe to the MacRumors YouTube channel for more videos. Several other sources have previously claimed that some iPhone 13 models will support a 120Hz refresh...
Screen Shot 2021 03 03 at 11

MagSafe Charging Port for iPhone Appears in Apple Patent

Wednesday March 3, 2021 1:30 am PST by
In a newly granted patent, Apple envisions a type of connectivity port using an iteration of its magnetic MagSafe charger to charge an iPhone, potentially paving the way for a future without Lightning. Submitted to the United States Patent and Trademark Office on Tuesday (via Patently Apple), the patent outlines a three-pinned MagSafe charger, similar to the ones found in older MacBook...
apple transfer google photos 1

Apple Launches Service for Transferring iCloud Photos and Videos to Google Photos

Wednesday March 3, 2021 12:04 pm PST by
Apple this week introduced a new service that's designed to make it quick and easy for iCloud users to transfer their stored photos and videos to Google Photos. As outlined in an Apple support document, you can go to Apple's privacy website and sign in to see the "Transfer a copy of your data" option. If you select this and go through all the steps, Apple will transfer your iCloud photos and ...
galaxy s21 iphone 12 pro max front feature2

Kuo: Some 2022 iPhones to Abandon Notch in Favor of 'Punch-Hole' Display

Monday March 1, 2021 8:05 am PST by
At least some 2022 iPhone models will abandon the notch and switch to a "punch-hole display design" instead, similar to Samsung's recent high-end Galaxy smartphones, analyst Ming-Chi Kuo said today in a research note obtained by MacRumors. Kuo said the hole-punch display design will be adopted by high-end 2022 iPhones at a minimum, and if production yields are good enough, all 2022 iPhone...