Lots of coverage on Apple since their announcement yesterday on revising its revenue guidance.
Here’s a lengthy chat on BBC Radio 5 Live’s Wake Up To Money programme, where I try – mostly in vain – to suggest the problem isn’t necessarily the iPhone’s price point:
This morning I published this take on how big a problem this is for Apple in the long run and, well, I don’t think it’s anything approaching a crisis. The problem is that the decline of the iPhone – or rather, the global smartphone market – has been accelerated by China. Apple has been putting in the groundwork to deal with the device no longer being the major breadwinner, but those strategies haven’t come to fruition yet. That work will continue, China’s economy may well improve, and we’ll perhaps forget this ever happened. From my piece:
Services, health and fitness, entertainment. It’s done a simply spectacular job of building serious cash beyond selling hardware. The Services part of Apple makes almost as much money as Facebook’s entire business. Apple is not a company in trouble.
China’s economy, on the other hand, is – and it’s meant the iPhone’s decline has happened much more quickly than Apple – or anyone – had bargained for. And for that you suspect, privately, Mr Cook holds the current US administration partly responsible. The trade war is trickling down and affecting consumer confidence, Mr Cook told shareholders