“In fact, the only record, such that there was, was the size of the miss,” Thompson writes. “So what went wrong?”
“I believe that Apple’s management made three critical errors in their forecast for this last quarter that were predictable precisely because they had made the same errors before,” Thompson writes.
1. China and ‘S’ Cycles
2. Non-Flagship iPhones / staggered release of iPhones
3. iPhone Destiny / assumption that iPhone growth is inevitable
Tons more in the full article – recommended – here.
MacDailyNews Take: The problem for Apple in China, as Thompson explains, is WeChat. Apple has much less “lock-in” and is only competing with hardware and features like dual SIMs (to which they were late). As Thompson writes succinctly, “Apple is far more exposed to challenging macroeconomic conditions in China than they are elsewhere thanks to their relative lack of a moat.”