January 3, 2018
Yesterday, the CEO of Apple, Tim Cook posted a press release warning investors that the company would not reach their previously expected revenue goal for the quarter. Cook went on to announce that the lower than excepted revenues came from plunging iPhone sales in Greater China, along with their weakening economy. China makes up approximately 15% of Apple’s global revenue. Apple (AAPL) which held the top spot in the stock market fell 10%, leading the DOW to drop 660 points today. Apple now stands below Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOGL).
Apple’s current quarter, which ended December 29, 2018, was originally estimated to bring in between $89 billion and $93 billion. Cook’s statement revealed that the projected revenue would be approximately $84 billion.
During their conversation today, Ethan Bearman pointed out that Apple hasn’t had a breakthrough product under Cook’s leadership, with the iPhone, iPad, iMac all being products under Steve Jobs. KGO’s Techonomics host Jason Middleton weighed in on this question saying, “They are hoping the Apple Watch will catch on and medical record management can be part of that. If they can get insurance companies involved in that, then they have a chance to make some hay in that market because they will be ahead of the game,”
Currently, Apple’s Services sector only makes up about 25% of their overall revenue. Both Bearman and Middleton agree that Apple’s next breakthrough needs to come from their Services via Apple Watch. The Apple Watch can measure users’ heart rate, but if they dive into full medical services (measuring blood pressure, oxygen levels, etc.), they would become the first of their kind.
Listen to Bearman and Middleton’s full conversation below.