Only high prices for some products were identified by Apple boss Tim Cook as one of those currently facing the challenge. Coupled with a strong dollar, Cupertina’s electronics became inaccessible mainly in poorer countries, so Apple decided to overestimate some products, the company said.
But he does not expect the situation to calm down at the same time. Revenue from the sale of iPhones, which are the company's flagship, fell by fifteen percent year-on-year.
The Financial Times also warns that sales also affect existing customers. Statistics show that iPhone owners change their devices with less frequency than in previous years. The situation is also known to Cook, who rejects any assumptions about declining quality standards. “I am convinced that creating products to the most stringent standards is the best thing for a client,” he said.
Therefore, analysts expect Apple to focus on existing customers – more than 900 million people are currently working in the mobile iPhone alone, which is eight percent more than last year. One step may be focusing on additional services, such as the Apple Music Streamer. He currently uses about 50 million users, and Apple charges a monthly fee of 360 million people worldwide for various types of subscriptions. By the end of the year, they can be up to half a billion.
Even their continued growth will not necessarily save Apple. "Is Apple a service?" Not. Apple is a manufacturer of equipment and high-quality services that cannot do without equipment, ”Jim Suva told CNBC Bank Citi Bank.
The current mood inside Apple is also related to rumors about the expansion of the Apple Pay payment service, which is expected in the Czech Republic in the coming weeks. In China, Americans want to break through the smart home speaker. As for confidence in your business, Cook also convinces investors in many public places, which is not a common problem at this time of year.
Apple's profit in the US in the first quarter fell to $ 19.97 billion ($ 450.2 billion) from $ 20.07 billion in the same period last year. Revenue fell five percent to $ 84.3 billion. At the same time, the company warned that this quarter is expected to further lower profits.