Shares Slump, Sales Down Now Apple Refuses To Reveal How Many iPhones They Are Selling
When Xbox sales slumped Microsoft stopped telling the market how many they had actually sold, now Apple is taking a leaf out of Microsoft’s book by refusing to say how many iPhones they have sold, the market responded by slashing their share value by nearly 7%.
Days after increasing the price of their iPads by 25% and MacBooks even higher, Apple, who chose to jack up the price of their new iPhones, to the point that a lot of iPhone owners chose not to upgrade to a new model.
When iPhones were the hot new thing, like in 2015, it was easy for the company to tell investors it shipped 46 percent more of the devices now as the market turns on Apple it’s a whole different story. Back in 2013, Apple stopped breaking out Mac revenue into both laptops and desktops.
These products are of less importance than iPhones and are struggling to deliver growth. The company also stopped reporting iPod sales at the end of 2014, that product became obsolete.
The slump over the weekend was the biggest single-day decline since January 2014, and the decline pushed Apple’s market value down to $987 billion, after it hit $1 trillion in August.
Also impacting Apple is the fact that global shipments fell 8 percent in the third quarter, compared with a year earlier, leaving the industry “effectively in a recession,” Strategy Analytics wrote in a research note after the disappointing Apple results.
The problem for Apple is that their powerhouse product, the iPhone, is slowing and they don’t want the market to known how many they are selling.
In the fiscal fourth quarter, Apple said iPhone unit sales barely grew from a year earlier, even though new flagship devices came out in the period
The reduced disclosure “raises the spectre of a sustained iPhone downturn,” wrote Nomura Instinet analyst Jeffrey Kvaal. He has a neutral rating on the stock and cut his price target to $185 from $215. Kvaal
Reporting 90 days of unit sales no longer presents an accurate picture of Apple’s performance, Chief Financial Officer Luca Maestri said. Chief Executive Officer Tim Cook likened reporting unit sales of products to disclosing how many items are in a shopping cart at the grocery store versus how much the items cost.
Some analysts were unimpressed. “No one saw that coming. What are they hiding?” Neil Campling, head of tech, media and telecom research at Mirabaud Securities Ltd., wrote in a note to clients.
Campling said that it now appears that Apple will give commentary when it has good news, but not when things are bad.
Still, the move is not without precedent. Apple has done it before, and other tech companies have, too — with differing results:
Another Company that chose to stop giving out precise details of how badly it was doing was Intel.
For more than a decade it poured billions of dollars into mobile phone chips that failed to make a dent in the market.
In 2015, Intel folded the unit into its giant personal computer processor business and has stopped reporting the numbers.