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