Apple CEO Tim Cook gets 15% pay cut following first sales slump in 15 years
Apple’s profit goes down as iPhone sales keep on to declining. Apple could manage to sell 40.4 million iPhones in recent months, whereas the profit was 47.5 million last year. There is 15 percent drop and iPhone growth is significantly slowing down. As a result, the slump in Apple’s profit has fallen 27 percent. Apple has maintained the overall balance of iPhone sales. But the average selling price for the iPhone has crashed to $595 from $662 last year because people are picking for the smaller iPhone SE.
A slump in iPhone sales this year was already expected. Samsung and Google can contrive, but Apple still believes that the iPhone can make around 60 percent of overall profit. However, Apple has cut the prices for iPhone 6s, iPhone 6s Plus, and iPhone SE. The iPhone 6s now starts at Rs. 50,000, iPhone 6s plus is now available at Rs. 60,000. The iPhone SE has also slashed down.
Apple CEO Tim Cook gets 15% pay cut
Apple castigated CEO Tim Cook for the iPhone maker’s first fall in sales in 15 years with a 15 percent pay slash.
Cook still tried well with a compensation package valued at $8.7 million for Apple’s financial year that ended on Sept. 24 last year. But the sum was down from nearly $10.3 million in the previous year. So this leads to a cut in Tim Cook’s pay and other executives.
Apple’s returns dropped 8 percent, and its operating profit turned down 16 percent. Because Very few iPhones have been sold since its inception in 2007. Apple’s yearly income diminished since 2001. The iPhone set off a revolt in mobile computing and it became Apple’s huge moneymaker, amidst competing products chiefly operated by Google’s free Android software. Most of the popular smartphones are strengthened by Android, but the iPhone still remains an expensive status icon.
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Clients are sticking on to their existing iPhones for the longer time instead of grabbing newer and upgraded models every year. Shareholders are anxious that Apple depends on the iPhone, they even witness the company’s incapability to initiate another advanced product since Jobs’ death in 2011.
Cook, Job’s successor, hoped that Apple would hit the market with a smartwatch uncovered in 2014, but it has only had reasonable success.
The Company was preparing to face a sales drop last year. The Apple Board’s committee establish a profit goal of $224 billion for last year, which have been a 4 percent turn down from the earlier year. The company anticipated sales to bounce back during the holiday season and consumers would be breaking up its latest iPhones, the 7 and 7 Plus.