Last week saw Tim Cook issue a warning to investors that Apple would miss its quarterly revenue goal by as much as ten percent. Forbes' recent Apple Loop column goes into more detail, but the rare adjustment is an unprecedented miss in Apple's predictive capability, and one that has many question Cook's overall approach.
For all of Apple's wide range of products, the skew in terms of sales and revenue is focused on the iPhone. It's fair to say that the iPhone platform has pushed Apple towards record highs in the business world.
Cook has taken the power and volume of the iPhone and pushed up prices at every opportunity. Sales may have remained flat but revenue grew, and Wall Street wanted growth.
The problem here is that at some point, your audience is going to decide that enough is enough and you are charging too much. The trick is to catch the price increase before you hit this point. Tim Cook and his team overshot, and the sales are collapsing.
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