Cook promises Apple will 'learn' and 'take action' in memo to workers

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Comments

  • Reply 41 of 88
    EddyMac said:
    According to Cook this has a lot to do with China's economy and not much to do with anything else, including pricing.
    Umm... wrong Here's what he actually said in his letter:

    "When we discussed our Q1 guidance with you about 60 days ago, we knew the first quarter would be impacted by both macroeconomic and Apple-specific factors. Based on our best estimates of how these would play out, we predicted that we would report slight revenue growth year-over-year for the quarter. As you may recall, we discussed four factors:

    First, we knew the different timing of our iPhone launches would affect our year-over-year compares. Our top models, iPhone XS and iPhone XS Max, shipped in Q4’18—placing the channel fill and early sales in that quarter, whereas last year iPhone X shipped in Q1’18, placing the channel fill and early sales in the December quarter. We knew this would create a difficult compare for Q1’19, and this played out broadly in line with our expectations.

    Second, we knew the strong US dollar would create foreign exchange headwinds and forecasted this would reduce our revenue growth by about 200 basis points as compared to the previous year. This also played out broadly in line with our expectations.

    Third, we knew we had an unprecedented number of new products to ramp during the quarter and predicted that supply constraints would gate our sales of certain products during Q1. Again, this also played out broadly in line with our expectations. Sales of Apple Watch Series 4 and iPad Pro were constrained much or all of the quarter. AirPods and MacBook Air were also constrained.

    Fourth, we expected economic weakness in some emerging markets. This turned out to have a significantly greater impact than we had projected." 

    What part of the first three "factors" he brings up has to do with China's economy?

    Add: See Comments #52 and #54 below.
    edited January 3
  • Reply 42 of 88
    ouraganouragan Posts: 428member
    I agree with the iPhone problems in China. Apple is like the old General Motors, i.e. producing products that customers don't want to buy, either because the price is too high or the product design is flawed as with the anorexic iMac.

    While it makes sense to produce a light and thin portable computer, the iMac is a desktop computer that needs volume to create proper ventilation for the heat produced by desktop components and volume to create an exceptional sound quality, the extra space being needed for great acoustics.

    Apple came up with an exceptional industrial design for the all in one desktop iMac from 2009 to 2012. No other company would abandon such a successful industrial design because they know that lightning doesn't strike twice over a short period of time. Apple had an exceptional industrial design and customers want Apple to keep it and use current day components. For instance, Apple doesn't offer its customers the option to buy a 6 or 8 TB Fusion drive with a 256 GB SSD if they need the extra space and are willing to pay the extra cost.

    Isn't it strange and akward that the iMac monitor is limited to 27 inches? What about 28 or 29 inches? After 10 years, is 27 inches the best that Apple can do?

    2019 marks the 10th anniversary of the breakthrough 27 inch iMac model, first introduced in 2009. It's time to abandon the anorexic iMac form factor in favor of a renewed, more exciting iMac model derived from the Late 2009 to 2012 iMac form factor, but with updated components and features.

    The current anorexic iMac which use tape instead of screws to bind parts together doesn't project an image of quality and sturdiness, in addition to having a sound quality which seems less than optimal.

    Bring back some common sense to Apple. Listen to what customers are saying and the reason why they don't buy the current anorexic iMac.

    Some claim that Apple has spent too much time and energy on increasing profits and share prices by reducing quality and raising prices, instead of focusing on Apple's mission to deliver the best products on earth for its customers.

    Tim Cook sure knows what I want in a 2019 iMac. If Apple can meet my needs, i will buy the 2019 iMac, just like millions of customers around the world. Good luck on your soul searching. Listen to your customers, the people willing to buy your products.






    elijahgavon b7
  • Reply 43 of 88
    iPhones are too expensive. the excuse that they replace a host of devices is outdated in 2019. 

    Iphones are too heavy x xs xr .. shave an ounce off that weight T

    New iPads are usb -c.  all device in 2019 should include that switch, not 2020.

    Dont charge $1000 for a phone and not include a fast charger.

    where's airpower.

    clean it up.





    ouragan
  • Reply 44 of 88
    JayVeeJayVee Posts: 23member
    I feel that Apple has lost some of its "wow", the way it pleasantly surprised us all.  Remember when the iPad was first introduced, and all the analysts were certain it would cost at least $1000?  Jobs mocked them by unveiling a price only half that.  Remember how we were wowed when he pulled the MacBook Air out of that manila envelope?

    I feel underwhelmed lately.  I bought an iPad Pro last week, only to remember after that I can't use my iPhone X's lightning headphones with it, and unfortunately there is no Apple lightning to USB C adaptor to be found.  I guess I could have used my Beats X wireless headphones, but those died on me a few months ago (after less than a year of use).  I wanted to buy an Apple TV 4K to wirelessly mirror my MacBook Pro's display to my 4K TV, but lo and behold, you can't mirror at 4K resolution.  The camera bump on my iPhone X means it gradually slides off (almost) flat surfaces.  I find the TouchBar underwhelming, and would have preferred buying a 15" MacBook Pro with the function keys instead, and presumably saving about $200, too.

    I used to update all my software immediately, but over the past couple years I've decided to wait and see how it goes before I update anything.  There always seems to be a catch or caveat somewhere, and I don't want to risk anything.

    This is also the first year I didn't buy a new iPhone, after having owned every iPhone since the original was released back in 2007.

    I'd love to be impressed once again, to be wowed once again, to find a product irresistible once again.

    I'm personally looking forward to an update iMac to replace my 2015 5K model, whilst we wait for the Mac Pro.  Ideally, I'd love an nVidia graphics card for 3D rendering on CUDA cores, but it seems we are stuck with Radeon cards.  I'd also be interested in a smaller sized iPhone than the iPhone X / XS / XR, whether it is called SE 2 or whatever.

    Does anyone feel the same?
    elijahgentropysavon b7ouraganbaconstang
  • Reply 45 of 88
    monstrositymonstrosity Posts: 2,206member
    I don't buy Apple products as much because of their attitude towards freedom of speech. 
    toysandme
  • Reply 46 of 88
    knowitallknowitall Posts: 1,408member
    EddyMac said:
    According to Cook this has a lot to do with China's economy and not much to do with anything else, including pricing.
    Umm... wrong Here's what he actually said in his letter:

    "When we discussed our Q1 guidance with you about 60 days ago, we knew the first quarter would be impacted by both macroeconomic and Apple-specific factors. Based on our best estimates of how these would play out, we predicted that we would report slight revenue growth year-over-year for the quarter. As you may recall, we discussed four factors:

    First, we knew the different timing of our iPhone launches would affect our year-over-year compares. Our top models, iPhone XS and iPhone XS Max, shipped in Q4’18—placing the channel fill and early sales in that quarter, whereas last year iPhone X shipped in Q1’18, placing the channel fill and early sales in the December quarter. We knew this would create a difficult compare for Q1’19, and this played out broadly in line with our expectations.

    Second, we knew the strong US dollar would create foreign exchange headwinds and forecasted this would reduce our revenue growth by about 200 basis points as compared to the previous year. This also played out broadly in line with our expectations.

    Third, we knew we had an unprecedented number of new products to ramp during the quarter and predicted that supply constraints would gate our sales of certain products during Q1. Again, this also played out broadly in line with our expectations. Sales of Apple Watch Series 4 and iPad Pro were constrained much or all of the quarter. AirPods and MacBook Air were also constrained.

    Fourth, we expected economic weakness in some emerging markets. This turned out to have a significantly greater impact than we had projected." 

    What part of the first three "factors" he brings up has to do with China's economy?
    Explaining why you are wrong backfires everytime. 
    baconstang
  • Reply 47 of 88
    canukstormcanukstorm Posts: 1,959member
    EddyMac said:
    According to Cook this has a lot to do with China's economy and not much to do with anything else, including pricing.
    With respect to China, it isn't just the economy and trade-wars, there's also the WeChat factor.  There was a great article from 2017 discussing this very topic

    "That, though, is a long-term problem for Apple: what makes the iPhone franchise so valuable — and, I’d add, the fundamental factor that was missed by so many for so long — is that monopoly on iOS. For most of the world it is unimaginable for an iPhone user to upgrade to anything but another iPhone: there is too much of the user experience, too many of the apps, and, in some countries like the U.S., too many contacts on iMessage to even countenance another phone.

    None of that lock-in exists in China: Apple may be a de facto monopolist for most of the world, but in China the company is simply another smartphone vendor, and being simply another smartphone vendor is a hazardous place to be. To be clear, it’s not all bad: in China Apple still trades on status and luxury; unlike the rest of the world, though, the company has to earn it with every release, and that’s a bar both difficult to clear in the abstract and, given the last two iPhones, difficult to clear in reality."

    https://stratechery.com/2017/apples-china-problem/
    edited January 3 muthuk_vanalingamouragan
  • Reply 48 of 88
    SpamSandwichSpamSandwich Posts: 31,301member
    I don't buy Apple products as much because of their attitude towards freedom of speech. 
    That’s a non-issue. They’re not the Federal government so if they block a service or kick a person off of iTunes or their Podcasts app, that’s not an unconstitutional act.
    edited January 3 JWSC
  • Reply 49 of 88
    monstrositymonstrosity Posts: 2,206member
    When you have powerful companies like Apple promoting socialist agendas, don't come crying when the inevitable social and economic decline happens. People can't afford to buy your high-end products because you helped to destroy the middle class.
    Duh
    elijahgouragantoysandme
  • Reply 50 of 88
    SpamSandwichSpamSandwich Posts: 31,301member
    When you have powerful companies like Apple promoting socialist agendas, don't come crying when the inevitable social and economic decline happens. People can't afford to buy your high-end products because you helped to destroy the middle class.
    Duh
    Personally, I don’t like Apple’s politics but if you buy an Apple product, you’re buying the whole package. I’m OK with that as long as it doesn’t harm long-term profitability.

    Having said all that, I think it’s about time Apple thought about a post-Cook Apple.
    elijahgtoysandme
  • Reply 51 of 88
    canukstormcanukstorm Posts: 1,959member
    When you have powerful companies like Apple promoting socialist agendas, don't come crying when the inevitable social and economic decline happens. People can't afford to buy your high-end products because you helped to destroy the middle class.
    Duh
    Personally, I don’t like Apple’s politics but if you buy an Apple product, you’re buying the whole package. I’m OK with that as long as it doesn’t harm long-term profitability.

    Having said all that, I think it’s about time Apple thought about a post-Cook Apple.
    "Having said all that, I think it’s about time Apple thought about a post-Cook Apple."

    What makes you think they're not? Every prudent CEO / BoD should have a succession plan
    toysandme
  • Reply 52 of 88
    EddyMac said:
    According to Cook this has a lot to do with China's economy and not much to do with anything else, including pricing.
    Umm... wrong Here's what he actually said in his letter:

    "When we discussed our Q1 guidance with you about 60 days ago, we knew the first quarter would be impacted by both macroeconomic and Apple-specific factors. Based on our best estimates of how these would play out, we predicted that we would report slight revenue growth year-over-year for the quarter. As you may recall, we discussed four factors:

    First, we knew the different timing of our iPhone launches would affect our year-over-year compares. Our top models, iPhone XS and iPhone XS Max, shipped in Q4’18—placing the channel fill and early sales in that quarter, whereas last year iPhone X shipped in Q1’18, placing the channel fill and early sales in the December quarter. We knew this would create a difficult compare for Q1’19, and this played out broadly in line with our expectations.

    Second, we knew the strong US dollar would create foreign exchange headwinds and forecasted this would reduce our revenue growth by about 200 basis points as compared to the previous year. This also played out broadly in line with our expectations.

    Third, we knew we had an unprecedented number of new products to ramp during the quarter and predicted that supply constraints would gate our sales of certain products during Q1. Again, this also played out broadly in line with our expectations. Sales of Apple Watch Series 4 and iPad Pro were constrained much or all of the quarter. AirPods and MacBook Air were also constrained.

    Fourth, we expected economic weakness in some emerging markets. This turned out to have a significantly greater impact than we had projected." 

    What part of the first three "factors" he brings up has to do with China's economy?
    The first three items were “broadly in line with expectations”. It’s the fourth item that “turned out significantly greater impact”.   So, Eddy Mac seems mostly correct, no?
    baconstang
  • Reply 53 of 88
    gordygordy Posts: 972member
    Hopefully this humbling will allow Apple to return to their roots as a “premium” manufacturer, and get out of the “luxury brand” business. Consumers are fickle. 
  • Reply 54 of 88
    drewys808 said:
    EddyMac said:
    According to Cook this has a lot to do with China's economy and not much to do with anything else, including pricing.
    Umm... wrong Here's what he actually said in his letter:

    "When we discussed our Q1 guidance with you about 60 days ago, we knew the first quarter would be impacted by both macroeconomic and Apple-specific factors. Based on our best estimates of how these would play out, we predicted that we would report slight revenue growth year-over-year for the quarter. As you may recall, we discussed four factors:

    First, we knew the different timing of our iPhone launches would affect our year-over-year compares. Our top models, iPhone XS and iPhone XS Max, shipped in Q4’18—placing the channel fill and early sales in that quarter, whereas last year iPhone X shipped in Q1’18, placing the channel fill and early sales in the December quarter. We knew this would create a difficult compare for Q1’19, and this played out broadly in line with our expectations.

    Second, we knew the strong US dollar would create foreign exchange headwinds and forecasted this would reduce our revenue growth by about 200 basis points as compared to the previous year. This also played out broadly in line with our expectations.

    Third, we knew we had an unprecedented number of new products to ramp during the quarter and predicted that supply constraints would gate our sales of certain products during Q1. Again, this also played out broadly in line with our expectations. Sales of Apple Watch Series 4 and iPad Pro were constrained much or all of the quarter. AirPods and MacBook Air were also constrained.

    Fourth, we expected economic weakness in some emerging markets. This turned out to have a significantly greater impact than we had projected." 

    What part of the first three "factors" he brings up has to do with China's economy?
    The first three items were “broadly in line with expectations”. It’s the fourth item that “turned out significantly greater impact”.   So, Eddy Mac seems mostly correct, no?
    Fair enough -- I can see that interpretation. Noted above.
    edited January 3
  • Reply 55 of 88
    palominepalomine Posts: 362member
    maestro64 said:
    The world is coming to an end, but Apple still will put more money into the bank this pass quarter than any other company. and Apple will use that money to buy back more of it shares at a lower cost. Those how are long time holder will get more dividends and able to repurchase shares at a lower cost. At some point there will be less share available for a company generating more cash then any company could imagine doing and then what is the market going to do.

    With that said, Apple had to see this coming, the whole battery replacement impacting new sales and the fact consumers are hanging on to phones longer and longer. 
    As it was said, most of the phone in my house is now on the 4 yr upgrade cycle with at least one battery replacement in the middle. Even if Apple did not have any sort of battery issue, you can only charge and discharge a battery so many times, add any amount of heat to this process and the battery will fall off at some point. The who trade war which had been talk about since the beginning of the summer and Apple did not think this would not have some level of impact on their business, if that was the case it was short sighted on their part. They had to know all this back in the fall and they still put forward higher estimates.
    I agree with most of this. I think they likely tried to forecast some of the trade war effects, but it’s been pretty unpredictable. Still, I’d bet Apple had a reasonable estimate of the holiday quarter sales. What threw everything off was the recent Huawei executive arrest in Canada.

    With China urging people to buy only Chinese phones, well, yeah I bet that really messed up sales estimates at Apple. Will Samsung also take a sales hit I wonder?  The whole world will soon pay a big price for this sniping.
    However this plays out, Foxconn may end up having to lay off people. Trade wars are beyond stupid and that’s really saying something because economics is not very clear about anything  much, except that trade wars don’t work.

  • Reply 56 of 88
    I have been using apple devices since 1989 and still use them. and one thing i have learned is that they have become very greedy. I am using an iphone SE and refuse to pay £1000 upwards for something that in real terms has a life of 5 years due to software updates. I thought they may have learnt from them almost going under until Steve came back and saved them. I always think, that if you lower a price of something a bit that you have more chance of selling more, Rather than having such a high price that the unit sales are less. I must say on ending, That the build quality is better than the rest and i have always prefered apple stuff, But my pocket money just can’t and won’t keep up.
    elijahgouragan
  • Reply 57 of 88
    JWSCJWSC Posts: 490member
    iPhones are too expensive. the excuse that they replace a host of devices is outdated in 2019. 

    Iphones are too heavy x xs xr .. shave an ounce off that weight T

    New iPads are usb -c.  all device in 2019 should include that switch, not 2020.

    Dont charge $1000 for a phone and not include a fast charger.





    Fast chargers significanly reduce LIon battery life.
    baconstangtoysandmeAppleExposed
  • Reply 58 of 88
    "Learn" and "take action" are other words for "react". In tech, by the time you learn and take action, it is too late. What Apple needs is real vision. That means anticipating future trends and taking advantage of opportunity before it exists. It means designing products that customers won't know they want before they see them. The most recent products like this are the Air Pods and the Apple Watch. Both are great but neither rise to the level of the iPod or iPhone (or even the iPad). Cook is great at getting the products produced, shipped and supported. He is unfortunately not so good at creating them.
    edited January 3 baconstang
  • Reply 59 of 88
    SpamSandwichSpamSandwich Posts: 31,301member
    "Learn" and "take action" are other words for "react". In tech, by the time you learn and take action, it is too late. What Apple needs is real vision. That means anticipating future trends and taking advantage of opportunity before it exists. It means designing products that customers won't know they want before they see them. The most recent products like this are the Air Pods and the Apple Watch. Both are great but neither rise to the level of the iPod or iPhone (or even the iPad). Cook is great at getting the products produced, shipped and supported. He is unfortunately not so good at creating those products.
    I think that’s a fair criticism. On the other hand, we know they are spending a ton of money on R&D right now. That will presumably lead to some sort of payoff in the future.
    ouraganbaconstang
  • Reply 60 of 88
    AppleExposedAppleExposed Posts: 1,376unconfirmed, member
    tulkas said:
    They lost price discipline. Ahrendts gained too much influence and appears to have convinced Tim that they could go full out fashion house pricing strategy “we priced super high so people that want spend a lot can”.

    hopefully that’s a lesson Tim learns. Let Angela run the stores, let the professionals run the business.

    Highly disagree.

    You guys want Apple quality and innovation for free. Sorry but nothing is free. You're not gonna get all of iPhones features for half off.

    Apple Watch Edition was discontinued even though it was selling. That alone disproves your theory. 
    elijahgneil anderson
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