Read Tim Cook’s memo to Apple employees about slowing iPhone sales other issues

Apple has cutting its sales outlook for the offset fourth dimension inwards over a decade, but CEO Tim Cook has assured employees inwards an internal memo that he won’t blame external factors for the overall slowdown inwards iPhone sales inwards China as well as a diverseness of other trouble organization issues.

Here’s the memo inwards its entirety, via Bloomberg:

Team,

Happy New Year—I promise everyone was able to balance as well as savour fourth dimension amongst loved ones over the holidays.

This afternoon nosotros issued a alphabetic lineament to Apple investors explaining that nosotros are revising our financial guidance for the vacation quarter. I encourage you lot to read it. As you lot volition see, our revenue shortfall inwards Q1 is from iPhone, primarily inwards Greater China.

While nosotros are disappointed to hold out falling curt of our quarterly revenue goal, our financial offset quarter was too a tape setter for revenue from Services, Wearables as well as Mac. iPad revenue grew double-digits over the year-ago quarter as well as iPhone activations inwards the U.S.A. as well as Canada laid upwards novel Christmas Day records. We await to laid upwards all-time revenue records inwards fundamental markets including the US, Canada as well as Mexico, Western European countries including Federal Republic of Federal Republic of Germany as well as Italy, as well as countries across the Asia-Pacific share similar Korea as well as Vietnam. Our worldwide installed base of operations of active devices too striking a novel all-time high, reflecting the loyalty of our customers as well as their appreciation for the run you lot do.

We are tremendously proud of the innovations we’re delivering to our customers amongst iPhone XR, iPhone XS as well as iPhone XS Max. These are, without a doubt, the best iPhones we’ve ever made. We did non laid upwards a novel tape for iPhone sales inwards Q1, however, due to a number of factors—some macroeconomic as well as some specific to Apple as well as the smartphone industry.

External forces may force us around a bit, but nosotros are non going to role them equally an excuse. Nor volition nosotros only hold off around until they acquire better. This minute gives us an chance to acquire as well as to conduct maintain action, to focus on our strengths as well as on Apple’s mission—delivering the best products on globe for our customers as well as providing them amongst an unmatched grade of service. We contend Apple for the long term as well as inwards challenging times nosotros conduct maintain e'er come upwards out stronger.

With that inwards mind, delight bring together me for an all-hands coming together on Th morn at 9:30am PT. Be certain to depository financial establishment check AppleWeb for to a greater extent than details. Due to structure at Apple Park, we’ll hold out gathering at Town Hall on the Infinite Loop campus. Join us in that place inwards person, or via alive flow through AppleWeb. I’ll conduct maintain to a greater extent than details well-nigh the quarter, as well as I’m looking forrad to your thoughts as well as questions.

Hope to reckon you lot there.

Tim

Cook’s message to troops resonates amongst the talking points inwards his opened upwards alphabetic lineament to investors from yesterday, which sent the stock sliding past times equally much equally x per centum this morning. Despite slowing iPhone sales, Cook’s memo suggests that the fellowship volition laid upwards tape revenues for the Services, Wearables as well as Mac segments.

As the memo states, Apple volition agree an all-hands meeting amongst employees afterwards today to assuage whatever concerns they may conduct maintain well-nigh this whole iPhone situation.

The fellowship volition study vacation quarter earnings on Tuesday, Jan 29.

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