Tim Cook defends Apple, says product pipeline and ecosystem underappreciated by investors
It’s been an interesting few weeks for Apple, to say the least. In early October of 2018, the company was riding high. Interest in the iPhone XR release was mounting and Apple shares, as a result, were trading at an all-time high. Flash forward a few weeks and the narrative surrounding Apple seemingly did a 180 as reports of tepid iPhone XR demand began to emerge. And while it’s easy to dismiss any lone rumor from the supply chain, the sheer number of reports pointing to disappointing iPhone XR sales became too large to ignore.
About a week ago, Apple CEO Tim Cook penned a letter to investors and disclosed that Apple was revising its quarterly guidance for revenue by a few billion dollars on account of slower than expected iPhone XR sales. Apple shares, which were already down at this point, sunk even further and are now trading at levels not seen since mid-2017.
Naturally, the Apple doomsayers came out in full force and were quick to proclaim that Apple’s time in the sun had come to an end. In light of that, Cook appeared on CNBC earlier today in an effort to address the new cloud of pessimism that currently shrouds Apple.
“In terms of the naysayer, I’ve heard this over and over again,” Cook told Jim Cramer. “I’ve heard it in 2001, I’ve heard it in 2005, in ‘7, in ‘8, in ’10, in ‘12 and ’13. You can probably find the same quotes from the same people over and over again.
“And I’m not defensive on it,” Cook added. “This is America and you can say what you want, but my honest opinion is that there is a culture of innovation in Apple and that culture of innovation combined with these incredible, loyal customers, happy customers, this ecosystem, this virtuous ecosystem, is something that is probably under-appreciated.”
As for Apple’s slumping stock price, Cook relayed that investors tend to be emotional in the short-term and that Apple makes a point of focusing on the long-term.
“When I look at the long-term health of the company, it has never been better. The product pipeline has never been better. The ecosystem has never been stronger. The services are on a tear.”