Showing posts with label Apple News. Show all posts
Showing posts with label Apple News. Show all posts

Record Fall in Apple's Profit within Last Decade!

Fall in apple's profit

Smartphone giant apple faces a record fall in their quarterly profit within last decade! In the first quarter of this year, Apple earned profit $9.5 billion. And in the previous year, it was $11.6 billion! Gross margin for the quarter was 37.5% compared to 47.4% in the last year. 

Market analysts said, Apple could face huge fall in their profit. But the profit earned from iPhone and iPad has saved Apple this time. To be honest, the results were better than many had expected, as strong sales of iPhone and iPad boosted revenues to $43.6 billion. Expert says, due to the increase in competition and declining demands for the products, Apple is facing such challenge.

Apple reported its second quarter result in April 23, 2013. The sales volume of iPhone and iPad were 37.4 million and 19.5 million respectively. In the previous year the number of iPhone sold was 35.1 million and iPad was 11.8 billion. The number of Mac sold is less than 4 million which was exact 4 million in the last year. 

Apple CEO, Tim Cook Said- 
“We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad. Our teams are hard at work on some amazing new hardware, software, and services and we are very excited about the products in our pipeline.”

Slowing demand for Apple's products during the time of increased competition hurts its share price recently.
"Though we've achieved a credible scale and financial success, we acknowledge that our growth rate has slowed and our margins have decreased from the exceptionally high level we experienced in 2012,"
                                                                                                                        - Tim Cook, Apple CEO

Tim Cook, while demanding that Apple had always met its own estimates, also mentioned that others had been disappointed recently - and seemed eager to calm investors' fears.
But he also made it clear that the next few months will be a lean period, with teams working hard to introduce new products "this fall and throughout 2014".
Apple's boss is promising that innovation isn't over at his company - but investors' patience will be tested through the summer.

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Apple CEO Apologizes for the Poor Customer Service in China!

Apple Logo Chine Girl with iPhone Arrow Mail Logo

Though China is the Apple's second largest market it was continuously neglected by the company. Apple's warranty service was very poor in china. And also there were some misunderstandings about warranty policies caused by communication gap. Consequently the consumers of Apple in China were very disappointed as they were not getting enough after sales services compared to other counties. And finally Apple CEO, Tim Cook, apologizes to the Chinese consumers of their products.

Actually, Apple was losing its reputation in China. And its nearest competitor, Samsung, could take the chance. So this apology is being considered as a part of strategy. 

The Chinese Government-run media was protesting Apple for more than two weeks. The complaints were about Poor Customer Service and Warranty Policy of Apple in China. Consumers were also dissatisfied with Apple. They want Apple to improve the service quality in China. The Chinese Government is also trying to implement a new law to regulate the foreign handset manufacturers. 

The Apple CEO, Tim Cook, also reacted accordingly. He signed a letter by apologizing to the consumer with a promise to change the customer service policy and warranty service. 

Some important parts of the letter are mentioned here: 

"We are aware that a lack of communications . . . led to the perception that Apple is arrogant and doesn't care or attach enough importance to consumer feedback." 
Mr. Cook also said, according to the letter- "We express our sincere apologies for any concerns or misunderstandings this gave consumers."

China has been a vital consumer market for Apple. Last year, the sales volume in china reached $23.8 billion representing its 15% total revenue. More importantly, China is now the world's biggest market for smart phone manufacturer. In this situation, if Apple doesn't take necessary actions to the consumer feedback definitely Samsung will capture the market share. So, Apple can't avoid the demand of Chinese consumers. 

Apple should also consider the emotional aspects. Few years ago a Chinese boy who didn't have the enough money to purchase an iPhone and he sold his Kidney to purchase it! Sometimes newspaper reported that people is selling their blood to buy iPhone. These all prove that Chinese really like Apple. 

There are rational aspects too. Apple have their factory in china. As a local people Chinese can expect some facilities. But they feel they are being discriminated by Apple! 

So, as soon as possible, Apple should fix these sensitive issues in order to keep their position as a market leader. Once they are out of the track, it will be really hard for them to get back to the position.

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