Following the release of data that revealed iPhone sales declined significantly over the past months, Apple CEO Tim Cook is being watched closely by financial analysts and experts.
On Tuesday, it was revealed that iPhone sales went down by 15 percent in 2018. The iPhone is the most profitable product that the American tech giant has to offer. However, the dip in sales resulted in an earnings drop of approximately $20 billion.
According to the Associated Press, Wedbush Securities analyst Daniel Ives, said of the situation, "This is the defining moment for Cook. He has lost some credibility on Wall Street, so now he will have a to do some handholding as the company enters this next chapter."
Spectators are now eager to know what Cook will do next. Apple revealed that the company's revenue dropped by 5 percent from 2017's earnings. This is the first time the Cupertino-based company experienced such a huge setback since Cook replaced world-renowned business magnate Steve Jobs 7 years ago.
Aside from finding ways to bounce back with iPhone sales, Cook is expected to show thriving leadership in case the smartphones don't sell well this year.
Some analysts are getting worried over Apple's recent move. Usually, the American tech giant would make a prediction of how many iPhones it will sell for the new year. This time, the company didn't announce a forecast.
Furthermore, Cook said late last year that Apple will no longer provide details on the number of iPhones it will ship after the first quarter of 2019. This announcement raised fears about potential sales issues that the once-dominant iPhone could face in the long run.
During the holiday season, Apple's display of higher price tags on the iPhone backfired. Less consumers ordered the flagship, partly due to the cheaper offers from other competitors such as Xiaomi and Huawei.
It is unclear how Cook plans to lead Apple back into the limelight. On the other hand, the tech provider is expected to improve profit margins through its other services, including the upcoming video streaming service that should go toe-to-toe with Netflix.
Meanwhile, Cook's latest statement has left the smartphone industry wondering if Apple will soon cut iPhone prices as a way of recovering from the loss of last year.
According to BBC News, Cook admitted that some customers had a hard time accepting the iPhone's high prices. Cook explained that Apple has started revamping its pricing system to allow for ease among customers who are affected by currency fluctuations.
