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.

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Top Rated Comments

steggerwoof Avatar
71 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
71 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
71 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
71 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
71 months ago
Overpriced, no-innovation products. That's all Tim had to say.
Score: 28 Votes (Like | Disagree)
sirozha Avatar
71 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)