Apple Inc. Made an Announcement That Led to Investors Pulling Out
Last August, Apple Inc. became the very first company in the entire world to hit the trillion mark. Founded by the late Steve Jobs in the 70s, this tech company totally changes the game in the world of smartphones and computers. The company’s shares hit $207.5 which sealed the deal and become the first company to hit this milestone after US Steel did it back in 1901 when they became the first billion dollar company in the world.
However, it would seem that things are about to change when Apple officially announced last week that they will stop reporting how many products they have sold each quarter, and that includes all the iPhones, Macs, iPad sales.
No More Sales Reports
The company’s CFO Luca Maestri announced this during their Apple’s earnings call earlier this month. This will officially begin when the December quarter hits. This trillion dollar company always breaks down how much they have sold especially with their iPhones. Maestri said in a statement that they have always wanted to make their main objective to be enriching people’ lives and because do that, strong financial reports must follow.
He also stated that the number of iPhones and Macs they sell each quarter does not represent the overall strength of their company. However, he admitted that providing such information will make their investors content and have full trust toward them. They have done this for the past 20 years which helped their market value up.
This totally shocked the business world especially after the latest iPhones becoming more profitable than ever. The most expensive iPhone in the market at the moment is at $1,449 which is the iPhone XS Max. However, they still didn’t manage to meet Wall Street analysts’ expectations last quarter, which led to Tim Cook saying that every single time they launch a product, it always gets affected by the foreign exchange rates.
The reason why Wall Street analysts and Apple investors wish to know the average selling price of the Apple products is to monitor the financial health of the company. Experts think that Apple decided to make this move because they are anticipating major changes that may include the end of the iPhones.
Neither Apple CEO Tim Cook or any of their executives revealed other reasons for their sudden decision, which is making more of their investors anxious that led to some of them pulling out. Analyst Piper Jaffray also said that Apple may be doing this to change the focus and navigate it towards the service revenue per user instead of the number of sales.
Experts Take On The “New” Apple
Since experts believe that the trillion dollar company has finally reached its peak, it is now trying to turn into another direction with its profitability and success measures. It is obviously no longer the kind of tech company that the world has seen years ago, it has become a tradition for some people to wait for the new Apple iPhones every single year so that, they could replace their old ones. However, Apple no longer wants to give people that effect, they want more than just that.
Experts could not help but wonder if Apple may be hiding something or if it is just a new strategic move. Investors panicked when Apple revealed their desires to stop providing units for their products. According to analyst Timothy O’Shea, this decision may be based on Tim Cook’s desire to conceal softer sales in the next few years, since for the first time in history, they will disclose services gross margin which is the stock’s potential catalyst.
Wall Street analysts like Bank of America, J.P. Morgan Chase, Bernstein, Goldman Sachs, and more all have different thoughts regarding this recent and massive move from one of the biggest companies in the world.
More in Business
How Drake Outsold His Mentors After Learning Rap from a Prisoner
To many Drake is the popular music icon whose song ‘Hotline Blink’ became the subject of many hilarious memes, but what fans...September 13, 2019
The Median U.S. Household’s Income Rises to Above $61,000 Annually
A positive note for the American economy. According to a report released by the U.S. Census on Wednesday last week, middle-class...September 13, 2019
Pink Lost the Grammy But Her Kids Consoled Her With This Heartwarming Gift
There is no better consolation for an entertainer than winning a Grammy Award. Every star wants to hold that prestigious award in their...September 13, 2019
The Mindset that Helped Tennis Hall-of-Famer Andy Roddick Grow His Net Worth
The importance of saving and investing cannot be stressed enough by experts. Financial gurus have often advised setting aside a portion of your money for...September 13, 2019
Are The Presleys Broke? Elvis’ Ex-Wife Priscilla is Selling This Property to Save Her Daughter
With how popular the late Elvis Presley remains to this day, most people would think that his immediate family will all...September 13, 2019
Rihanna Is Now America’s Richest Female Musician–Here’s Why She Has No Plans to Stop Working Despite Having Millions
While Rihanna seems to have taken a break from making music, her last album being released last 2016, the Barbadian born...September 13, 2019
Stressed out? 9 Simple Tricks to Eliminate Depression and Heal your Inflammation Today!
It’s a given that you’ll feel blue at some point in your life. Whether its work or health-related, all that stress...September 13, 2019
Top Cities to Retire For Only $37,000 a Year
Want to retire comfortably without draining your pocket? A renowned retirement coach named Edd Staton says you might want to think...September 13, 2019
The Added Benefits of Selecting a Long-term Mortgage Fix for Your Financial Freedom
For decades, two-year mortgage setups have been quite the norm for homeowners and real-estate investors alike. However, with the rise in...September 13, 2019