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Apple hoped to offset slowing demand for iPhones by raising the prices of its most important product, but that strategy seems to have backfired after sales sagged during the holiday shopping season.
Results released Tuesday revealed the magnitude of the iPhone slump – a 15 percent drop in revenue from the previous year. That decline in Apple’s most profitable product caused Apple’s total earnings for the October-December quarter to dip slightly to $20 billion. Check out this interesting Apple recycling program if you own Apple products.
Now, CEO Tim Cook is grappling with his toughest challenge since replacing co-founder Steve Jobs 7 years ago. Even as he tries to boost iPhone sales, Cook also must prove that Apple can still thrive even if demand doesn’t rebound.
It figures to be an uphill battle, given Apple’s stock has lost one-third of its value in less than four months, erasing about $370 billion in shareholder wealth.
Cook rattled Wall Street in early January by disclosing the company had missed its own revenue projections for the first time in 15 years. The last time that happened, the iPod was just beginning to transform Apple.
”This is the defining moment for Cook,” said Wedbush Securities analyst Daniel Ives. “He has lost some credibility on Wall Street, so now he will have to do some hand-holding as the company enters this next chapter.”
The results for the October-December period were slightly above the expectations analysts lowered after Cook’s Jan. 2 warning. Besides the profit decline, Apple’s revenue fell 5 percent from the prior year to $84 billion.
It marked the first time in more than two years that Apple’s quarterly revenue has dropped from the past year. The erosion was caused by the decline of the iPhone, whose sales plunged to $52 billion, down by more than $9 billion from the previous year.
The past quarter’s letdown intensified the focus on Apple’s forecast for the opening three months of the year as investors try to get a better grasp on iPhone sales until the next models are released in autumn.
Apple predicted its revenue for the January-March period will range from $55 billion to $59 billion. Analysts surveyed by FactSet had been anticipating revenue of about $59 billion.
Investors liked what they read and heard, helping Apple’s stock recoup some of their recent losses. The stock gained nearly 6 percent to $163.50 in extended trading after the report came out.
“We wouldn’t change our position with anyone’s,” Cook reassured analysts during a conference call reviewing the past quarter and the upcoming months.
The company didn’t forecast how many iPhones it will sell, something Apple has done since the product first hit the market in 2007 and transformed society, as well as technology.
Apple is no longer disclosing how many iPhones it shipped after the quarter is completed, a change that Cook announced in November. That unexpected move raised suspicions that Apple was trying to conceal a forthcoming slump in iPhone sales – fears that were realized during the holiday season.
Cook traces most of Apple’s iPhone problems to a weakening economy in China, the company’s second biggest market behind the U.S. The company is also facing tougher competition in China, where homegrown companies such as Huawei and Xiaomi have been winning over consumers in that country with smartphones that have many of the same features as iPhones at lower prices.
Although a trade war started by President Donald Trump last year has hurt China and potentially caused some consumers there to boycott U.S. products, many analysts believe the iPhone’s malaise stems from other issues too.
Among them are higher prices – Apple’s most expensive iPhone now costs $1,350 – for models that aren’t that much better than the previous generation, giving consumers little incentive to stop using the device they already own until it wears out. Apple also gave old iPhones new life last by offering to replace aging batteries for $29, a 70 percent discount.
”The upgrade cycle has extended, there is no doubt about that,” Cook conceded.
Apple is banking that investors will realize the company can still reap huge profits by selling various services on the 1.4 billion devices running on its software.
That’s one reason why Cook has been touting the robust growth of Apple’s division that collects commissions from paid apps, processes payments, and sells hardware warranty plans and music streaming subscriptions. Apple Music now has more than 50 million subscribers, second to Spotify’s 87 million streaming subscribers through September.
Apple is also preparing to launch a video streaming service to compete against Netflix, though Cook said he wasn’t ready to provide details Tuesday.
The company’s services revenue in the past quarter climbed 19 percent from the prior year to $10.9 billion – more than any other category besides the iPhone. (VOA)
The pandemic brought about a global boom of entrepreneurship in 2020. Thousands of small businesses launched in the UK last year, and many were very successful. Some businesses started as passion projects, while others aimed to fill a hole in the pandemic market. Services and products, like at-home workouts, popped up all over social media from new and exciting businesses. The pandemic left many Brits financially unstable and scared for the future of their career. Launching their own business gave them something to focus on again and a small amount of income.
The Financial Times reported that the number of registered companies in the UK increased by 30% in 2020. As the world returns to normal, it will be interesting to see how these new businesses approach the post-pandemic world.
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If you have just set up a new business, here are some essential marketing tips to get the ball rolling:
Exploit social media
Social media is one of the most effective marketing platforms available. You can connect with a global audience for free and market your product or service to them. Post consistently and use high-quality imaging to catch your audience's attention. Engage with potential customers by replying to direct messages, comments, shares and likes. Use a few platforms to maximise your exposure and create a strong brand identity.
You can connect with a global audience for free and market your product or service to them. | Photo by Alexander Shatov on Unsplash
Network as much as you can
Networking is a vital part of business, and you can do it on and offline. Use sites like LinkedIn to connect with fellow entrepreneurs and those in different industries. Reach out to them directly and ask about their company or role. You might be surprised by how much you can learn from one conversation. Once in-person events return, you should look to make the most out of meeting people in your industry. You might find brands to collaborate with or a mentor to learn from. Make sure to hand out your business cards at the event so people can get in touch with you in the future.
Networking is a vital part of business, and you can do it on and offline. | Photo by Chris Montgomery on Unsplash
Create a blog
You need to be an expert in your industry. Create a blog and share your journey of learning to be a business owner. You can share your expertise and why you started the company, which other entrepreneurs can read and learn from. Your knowledge and experience might be extremely helpful for those just starting out. Use a range of marketing techniques to launch your business into the next phase.
Use a range of marketing techniques to launch your business into the next phase. | Photo by Sincerely Media on Unsplash
(Disclaimer: This article is sponsored and include some commercial links)
One of Indias fast growing Direct To Consumer (DTC) beauty and personal care brands, MyGlamm, launches its national TVC around the message 'All Natural #NoNasties today with actress Shraddha Kapoor, who is also an investor in the brand.
Kapoor who has a great millennial and Gen Z connect introduces 'My SUPERFOODS Kajal' which has No Parabens, No Mineral Oils, No Nasties while still being long-lasting and smudge-free and made with the goodness of nature. This is followed by many girls trying applying the kajal with confidence and while highlighting the ingredients Avocado Oil, Goji Berries, Vitamin E and Sunflower Seed Oil.
Commenting on the campaign, Apratim Majumder, CMO, MyGlamm says "Women have been telling us about what they want from their beauty products for a while now. Wikimedia Commons
The brand focuses on creating quality products that are high efficacy made with all-natural and no chemicals in the formulae. his campaign follows the #TellMyGlammWhatYouWant campaign where women logged in to tell the company what they wanted from their beauty products. It aims to establish a beauty democracy by giving consumers the power to tell the brand what they want thus changing the entire experience of how women buy beauty products in India.
Commenting on the campaign, Apratim Majumder, CMO, MyGlamm says "Women have been telling us about what they want from their beauty products for a while now. We have been innovating to serve those needs with products. When they told us that they want a kajal that is not only long-lasting and smudge-proof but also takes care of their eyes, we knew we had to do this. The campaign is about telling everyone out there who told us they need a kajal that cares, MyGlamm Superfoods Kajal is here for you! The campaign debued on MyGlamm's social channels- YouTube & Instagram on September 16. (IANS/ MBI)
Keywords: India, Direct beauty brands, My Glamm national, girls, kajal, confidence ingredients, Avocado Oil, Shraddha Kapoor
Phishing attacks targeting organisations rose up considerably during the pandemic, as millions of employees working from home became a prime target for cybercriminals. A large majority (83 per cent) of IT teams in India said the number of phishing emails targeting their employees increased during 2020, according to a report by UK-based cybersecurity firm Sophos on Monday.
"It can be tempting for organisations to see phishing attacks as a relatively low-level threat, but that underestimates their power. Phishing is often the first step in a complex, multi-stage attack. According to Sophos Rapid Response, attackers frequently use phishing emails to trick users into installing malware or sharing credentials that provide access to the corporate network," Sophos' Principal Research Scientist, Chester Wisniewski said in a statement. The findings also reveal that there is a lack of common understanding about the definition of phishing. For instance, 67 per cent of IT teams in India associate phishing with emails that falsely claim to be from a legitimate organisation, and which are usually combined with a threat or request for information.
The findings also reveal that there is a lack of common understanding about the definition of phishing. | Pixabay
As many as 61 per cent consider Business Email Compromise (BEC) attacks to be phishing, and half of the respondents (50 per cent) think threadjacking - when attackers insert themselves into a legitimate email thread as part of an attack - is phishing. Most of the organisations in India (98 per cent) have implemented cybersecurity awareness programmes to combat phishing. Respondents said they use computer-based training programmes (67 per cent), human-led training programmes (60 per cent), and phishing simulations (51 per cent).
Four-fifths of Indian organisations assess the impact of their awareness programme through the number of phishing-related tickets raised with IT, followed by the level of reporting of phishing emails by users (77 per cent) and click rates on phishing emails (60 per cent). All the organisations surveyed (100 per cent) in Delhi, Hyderabad, and Kolkata say they have a cybersecurity awareness programme in place. This was followed by Chennai where 97 per cent have such programmes, and then, Bengaluru and Mumbai at 96 per cent each. (IANS/ MBI)
Keywords: programmes, organisation, emails, phishing