It may seem absurd, but despite posting a 35% year–on–year increase in iPhone sales and an operating profit of more than $10 billion, Apple’s shares slipped in after hours trading.
The reason? It seems investors are not happy about the lack of specifics regarding the Apple Watch.
Tim Cook and co are unlikely to be too concerned about the drop in share price.
It’s likely to right itself soon enough, especially with new iPhones expected within the next two months and potentially new iPads by the end of the year too.
But that’s not to say that Apple doesn’t have things to think about.
iPad sales are declining steadily, with users seemingly wedded to larger smartphones.
And the aforementioned Apple Watch is also cause for concern.
Why? Simply because Apple is being coy. Some analysts believe it’s refusing to reveal specific sales figures in order to stay one step ahead of its rivals.
On the one hand that’s fair enough. Samsung never tells just how many wearables it’s shifted.
But on the other, this is Apple, a company known for giving out information about product units sold every three months.
This has proved a key tool in reiterating its products’ successes and ensuring its share price stays high and investors stay happy.
By including the Apple Watch alongside accessories, Beats Electronics kit, Apple TV and iPods, Apple is making a rod for its own back. It hates speculation.
But it’s causing a huge amount of it by not being specific.
Tim Cook said in the company’s post results conference call that the device had ‘exceeded expectations’, with a 49% jump in the ‘Other Products’ category leading some to wonder openly whether the Apple Watch was already a billion dollar business.
Apple intimated that it could well be more than that, saying the watch sold more than the iPhone and iPad in their first three months on sale.
Cook also said that sales of the watch were higher in June than in April or May, essentially refuting analyst claims that sales had dropped by a massive 90% since launch.
But if Cook really wants those stories to stop, he’d be much better off saying just how many Apple Watches the company has sold.
Reported figures range from three to six million. Either would comfortably make the Apple Watch the best–selling smartwatch yet.
Is Apple concerned about an iPad–style sales slide in the future? It seems so.
Will it ever release exact numbers? Don’t count on it.
But until it does, expect antsy investors to sell shares whenever Apple announces its quarterly numbers.