No one ever thought that taking over from Steve Jobs would be easy, but 6 years after the iconic Apple CEO and founder’s death, the strains are beginning to show on the current management. Except for an unsuccessful Apple Watch and updated versions of the iPhone, no new products have been in store for a while now.
It is clear that Mr Tim Cook, Apple’s current CEO, has streamlined and optimized what he is good at: operations; Apple’s efficiency in moving products and keeping up with its record profit margins on products is as high as ever, but if you are competing in a tech market, then you have to keep innovating, and that is happening less and less.
Reports came out of Taiwan today that the tech behemoth had to slash orders for its newest iPhone 8 and iPhone 8 plus by nearly 50% for the remainder of 2017. To put it in layman’s terms, the phone isn’t selling what they expected. In fact, it is selling far less than what was expected.
This is the first time since the rollout of new products in the last decade that Apple has had to cut back production so early in the sales period.
It was a bit expected that sales were not as thriving as before when the usual line forming in front of stores didn’t show up in worldwide newspapers (didn’t show up anywhere for that matter), so Apple has done some investigating of their own.
Though they won’t admit to having made a mistake, insiders state that releasing a new phone whilst the older model iPhone 7 is priced a hefty 150$ less for 95% the same technology (the iPhone 7 is still outselling the newer iPhone 8 in US stores) was not the best of moves. Secondly, the anticipation for the iPhone X which rolls out at year’s end keeps many pockets closed as well.
Let’s wait till the year’s end until we make Mr Cook’s final report card for the year, but as far as the iPhone 8 goes, he won’t be getting an ‘A’ from his board.