Tim Cook, Apple’s chief executive officer, issued a memo to employees in response to the unexpected news that the company’s earnings for the December quarter will be $5 billion to $9 billion lower than anticipated.
“External forces may push us around a bit, but we will not use that as an excuse,” Cook wrote in a memo obtained by AppleInsider from an unofficial source. “We will also not simply wait until they recover. This moment affords us the chance to learn and act, to concentrate on our strengths and Apple’s mission — delivering the best products on the planet to our customers and providing unmatched service. We manage Apple for the long term, and we have always emerged stronger from difficult times.”
The memo reiterated many of the claims made in his Wednesday bombshell letter, attributing weaker-than-expected iPhone sales to “macroeconomic” conditions and “Apple and smartphone industry-specific” issues.
Cook highlighted China in the letter, noting that Apple’s entire revenue shortfall can be attributed to the country. In addition, he blamed a strong U.S. dollar, fewer carrier subsidies, and people taking advantage of discounted battery replacements, which was interpreted by some as an admission that the company relies on degraded batteries to encourage upgrades.
The memo confirms that an “all-hands” meeting will take place on Thursday at 9:30 a.m. Pacific time. Due to construction at Apple Park, the meeting is being held at 1 Infinite Loop, Town Hall.
Cook concluded, “I will provide additional information about the quarter, and I look forward to your thoughts and questions.”
Some have interpreted the new guidance (revised from between $89 billion and $93 billion to just $84 billion) as proof that Apple has finally priced its iPhones too high, with the XR beginning at $749 and the XS at $999. In markets such as China, where brands such as Huawei and Oppo offer midrange and high-end phones for hundreds less, this is difficult to sell.