Even with record breaking sales, Apple investors remain skittish and unsettled. To put the investors’ minds to rest, Apple CEO Tim Cook recently addressed the rumor issue in a way that was intended to calm the investors down. Cook’s goal was to assure them that everything is under control with the plan he has in place.
With Apple’s margins down and profits not coming in monstrous proportions as in years past, the company will have to stop sandbagging earnings forecasts. This means that Apple top execs have to work twice as hard to calm the overly-stressed shareholders even with the postings of record revenue from iPad and iPhone sales.
Although in the past, the mystery and hype projected by rumors has helped Apple, it is beginning to have an adverse effect and has come back to take a bite out of the industry giant. Although Cook and other company leaders in the past never addressed specific rumors, that’s exactly what they did this past week when addressing shareholders. Cook spend his time on this past week’s earnings call by first offering a full-court defense of the company’s incredible product pipeline and the future of Apple. He also used the time to put out several fires regarding rumors of lessening demand for the iPhone as well as the standard conversation regarding the company’s need for lower priced devices and larger screened devices. Cook also pointed out the fact that there is always a question of accuracy when it comes to any kind of rumor about Apple’s plans. That while it is always difficult to pinpoint particular data, it is almost always impossible to interpret data for the company’s overall business. He reminded shareholders that on any given day there is going to be a varying yield, variance in supplier performance and a long list of things that can affect data points either positively or adversely. He stressed that any number of these things are not a good way to judge how the company stands overall. Cook stressed that the company wasn’t focused on market share and revenue alone, but that the company is more focused on quality not quantity and making price points more attractive.
With rumors abounding over the iPhone 5 and the screen size issue, Cook informed investors that Apple has that covered as well. He hinted at a possible new phone/tablet hybrid in the works.