In his interview on CNBC, Tim Cook while speaking to Fast Money’s Josh Lipton, talked elaborately on the reasons for declining iPhone sales. Cook said that the shortfall on Apple’s part is related to the iPhone.
Apart from iPhone sales, Cook also discussed other issues like Apple’s battery replacement program.
Recent Reports Suggest Backlash Against Apple in China
During his interview, Cook noted that as long as China is concerned, “As the quarter went on, things like traffic in our retail stores, traffic in our channel partner stores, the reports of the smartphone industry contracting, particularly bad in November — I haven’t seen the December number yet, but I would guess that wouldn’t be good either. And so that’s what we’ve seen. And now there are a lot of things we can do to turn our — to sort of turn our business around in terms of the, both in China and more generally across.”
Businesses in China have been rejecting Apple products as they are embracing devices made by Huawei and other companies from home ground. Though Cook didn’t raise any objection about the legitimacy of reports, he brushed aside the reports as they are small in number.
Cook also added, “Certainly Apple has not been targeted by the government so let me take away any kind of doubt of that right up top. There are reports, sort of sporadic reports, about somebody talking about not buying our products because we’re American, maybe a little bit on social media, maybe a guy standing in front of a store or something.”
“My personal sense is that this is small. Keep in mind that China’s not monolithic. Just like America’s not monolithic. You have people with different views and different ideas. And so do I think anybody elected not to buy because of that? I’m sure some people did. But my sense is the much larger issue is the slowing of the economy and then this — the trade tension that’s further pressured.”
Among other challenges faced by Apple, Tim Cook referred to the company’s battery replacement program as part of the problem.
In the last few minutes of his interview, Tim Cook reassured about Apple’s Services business, which has grown an “incredible amount.” He is hopeful about the upcoming earnings as he said that the company would report around $10.8 billion for the quarter from Services.
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