Apple has just experienced its first sales drop in 15 years after the sales of iPhone took a downward trend. This, in turn, has led to the company’s CEO Tim Cook being handed a 15 percent pay cut.
The Company said that the sales of iPhones had gone down and revenues had dropped, citing that as the reason the company was forced to cut Cooks pay along with all its top executives. But looking at the figures, Cook will not have a reason to complain as he has still done extremely well.
The compensation package went from $10.3 million for the past year to $8.7 million for the fiscal year that ended in September.
According to the latest figures from the company, sales decreased by 8 percent to $216 billion, while the operating profit decreased by 16 percent to $60 Billion. The iPhone was responsible for the decline in all their products.
It was also the first time since 2001 that annual revenue dropped since Steve Jobs launched the musical player iPod. This then produced the iPhone and iPad. The iPhone changed the way we look at phones, and despite its high price and competition from other brands, it became a very sort of status symbol, defying all the odds.
Apple had anticipated a sales drop, but not a steep one like the one that occurred. There is still hope that sales could have rebounded over the holiday season, but we will find that out when the quarterly results, that include the festive season will be released in towards the end of this month.