Apple CEO Said Cheaper Replacement Batteries Means Fewer iPhone Upgrades

When Apple is considering the necessary adjustments, Tim Cook, its CEO has written a letter to their investors to show what goals Apple plans to make in the first quarter of 2019.

Cook always mentions expense and revenue numbers, as well as the outstanding message that has brought more fame for its brand on almost all of the publications relating to Apple. As he said, "our revenue will be lower than our original guidance for the quarter."

There are a lot of reasons why Apple’s estimates have had a clear variance compared to its actual outcomes. One of these primary reasons is due to the changes in market conditions. Within the recent 25 years, during the last six month of 2018, its GDP growth in China’s economy indicated the second lowest. Although Apple hoped to expand its market in China, the down period blew out all its plan.

The issues Apple has faced may hail from the purely economic or political factor; however, it is clear that a series of channel partners and stores from this brand have had the foot traffic reducing significantly in the Chinese market.

In other countries all over the world, upgrading to the new iOS smartphones or iPads didn’t attract too much attention from users. According to Tim Cook, it was due to that wireless carriers offered few subsidies and customers love purchasing replacement batteries for their current smartphones more.

At present, Apple’s CEO has revealed that using cheaper replacement batteries has the same meaning with the fewer rate of iPhone upgrades. However, all things are not entirely bad to the Cupertino-based company.

Compared to that of last year, its wearables division of this year has increased about 50%. The watch sales kept growing, and AirPod users were very interested in this product. While iPhones gained terrible sales, the number of the latest iPad Pro’s demand was enough to satisfy investors.

Tim Cook also said that the company will keep building incentive programs to enhance the number of iPhone upgrades and bringing more financing programs.