Early Last Year I Wrote That Apple’s (NASDAQ:AAPL)Tim Cook Should Be Sacked

Early Last Year I Wrote That Apple’s (NASDAQ:AAPL)Tim Cook Should Be Sacked

Early Last Year I Wrote That Apple’s (NASDAQ:AAPL)Tim Cook Should Be Sacked

$AAPL, $GOOGL

Apple (NASDAQ:AAPL)penalized CEO Tim Cook for the iPhone maker’s 1st sales slump in 15 years with a 15% pay cut.

Mr. Cook still did extremely well, with a compensation package valued at $8.7-M for Apple’s FY that ended on 24 September  according to a regulatory filing made Friday. But the amount was down from nearly $10.3-M in the prior FY.

The Cupertino, California, company cited a downturn in Apple’s revenue and operating profit as the Key reason it cut the pay for Mr. Cook and its other top Apple executives.

Apple’s revenue dropped 8% to $216-B, while its operating profit declined 16% to $60-B. That was because it sold fewer iPhones for the 1st time since the gadget came out in Y 2007.

It also marked the 1st time that Apple’s annual revenue decreased since Y 2001, which was just before the company’s late co-founder and CEO Steve Jobs unveiled the iPod, the gadget that set the stage for the iPhone and iPad.

The iPhone set off a revolution in mobile computing and became Apple’s biggest moneymaker, even as a wide range of device makers released competing products primarily running on Google’s (NASDAQ:GOOGL) free Android software. Most of the world’s smartphones are powered by Android, but the iPhone is still a popular high-priced status device.

The world’s consumers are holding on to their existing iPhones for longer periods instead of upgrading to a newer model every year or 2 raising investor concerns that Apple has become too dependent on the iPhone, a relentless worry that has been aggravated by the company’s inability to introduce another breakthrough product since Jobs’ death in Y 2011.

Mr. Cook, Jobs’ anointed successor, had hoped Apple would have another huge hit with his smartwatch unveiled in Y 2014, but that device has not caught on.

The company’s ‘s regulatory filing revealed that the company was bracing for a sales drop last year, thought not as steep as what actually happened.

The compensation committee for the firms Board of Directors had established a revenue goal of $224-B for last year, which would have been a 4% decline from the previous year.

The company expected sales to rebound during the Holiday shopping season on hopes that consumers would be snapping up its latest iPhones, the 7 and 7 Plus.

Apple will release its quarterly results that include the Christmas Holidays later this month.

I am sticking with my call that Tim Cook will go soon.

Symbol Last Trade Date Change Open High Low Volume
NASDAQ:AAPL 117.91 6 January 2017 1.30 116.78 118.16 116.47 31,732,300
HeffX-LTN Analysis for AAPL: Overall Short Intermediate Long
Bullish (0.41) Bullish (0.41) Bullish (0.45) Bullish (0.39)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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