We can say that the letter of Tim Cook to investors, in which the Apple CEO acknowledged the weak sales of iPhones, was the company's official statement to the world after all, it is there printed for anyone who wants on the company's website; many aspects of this complicated phase, however, are only shared internally, for those who work at the company.
The problem that absolutely everything leaks today is the Bloomberg He has already tried to put his hands on a letter that Cook sent to all Ma employees.
Check out our free translation below:
Happy New Year I hope everyone has managed to rest and enjoy time with their loved ones during the holidays.
This afternoon, we issued a letter to Apple investors explaining that we are reviewing our financial guidelines for the year-end quarter. I recommend everyone to read. As you will see, our revenue deficit in the first quarter of iPhones, mainly in Greater China.
Although we are disappointed that we are below our quarterly revenue target, our projection for the first fiscal quarter (2019) was also a record for Services, Wearables and Macs revenue. IPad revenue grew two digits from the same quarter last year, and iPhones activations in the US and Canada set new Christmas records. We hope to establish record historical revenues in major markets, including the USA, Canada and Mexico, in Western European countries, including Germany and Italy, and in countries in the Asia-Pacific region, such as Korea and Vietnam. Our worldwide installed base of active devices has also reached a new record, reflecting our customers' loyalty and their appreciation for the work you do.
We are extremely proud of the innovations we are offering our customers with the iPhone XR, iPhone XS and iPhone XS Max. These are, without a doubt, the best iPhones we've ever made. However, we have not set a new record for iPhone sales in the first quarter due to a number of factors – some macroeconomic and some specific to Apple and the smartphone industry.
External forces may have hindered us a little, but we are not going to use them as an excuse. Nor will we just wait until they get better. This moment gives us the opportunity to learn and act, to focus on our strengths and on Apple's mission to deliver the best products in the world to our customers and provide them with an unparalleled level of service. We manage Apple for the long term and, in difficult times, we are always stronger.
With that in mind, please join me for a meeting on Thursday morning at 9:30 am (local time in Cupertino; 3:30 pm for Brazilian summer time). Be sure to check AppleWeb for details. Due to the works at Apple Park, we will be meeting in Town Hall, on the campus in Infinite Loop. Join us in person or via live streaming through AppleWeb. I will have more details about the quarter and I await your ideas and questions.
I hope to see you there.
That Apple needs to depend less and less on the iPhone, everyone knows. And she is showing that, despite being very difficult, she is on the right track when creating a ?Wearable? category (Apple Watch, AirPods, etc.) that keeps growing, also offering ?Services? (another important category) that is also doomed to success (and this without having launched its service of streaming videos, which should be painted now in 2019).
Even so, I hope that this turbulent and unexpected period, even due to the great reduction in the estimates for the current fiscal quarter, will serve for the company to reevaluate some strategies that they have implemented and that are not pleasing at all (such as the current price policy).
Furthermore, it is incredible to see that, even in a clearly bad period, the iPhone managed to beat a record of activations at Christmas (in the American market) and that the installed base worldwide of active devices also reached a new record. It is also amazing to see that, just a few months after opening, Apple Park is already undergoing a new work. ?