Henceforth, Apple will no longer offer unit sales data for iPhones, iPads and Macs starting in the next quarter. The company will instead focus on the revenue generated. But why?
Well, revealing the company’s new plan, Apple Chief Financial Officer Luca Maestri said Thursday on a conference call that,
“As demonstrated by our financial performance in recent years, the number of units sold in any 90-day period is not necessarily representative of the underlying strength of our business,” and our unit of sale is less relevant for us today than it was in the past, given the breadth of our portfolio and the wider sales price dispersion within any given product line.”
With Apple no longer telling you how many iPhones, iPads and Macs it sells, it will therefore become difficult to get a sense of how well Apple is performing. iPhone unit sales are a critical metric that investors and company observers use to weigh its performance. But it is no more.
Apple these days no long generate its money from the number of product sales but rather by raising its prices. Apple-iPhone unit sales may not be growing, but its strategy to boost prices is working.
Still on the new plan of the company, Citigroup analyst Jim Suva noted that “some people may fear that this now means that the iPhone units are going to start going negative year-over-year because it’s easy to talk about great things and not show the details of things that aren’t so great.”
Apple CEO Tim Cook, retaliated by saying, “This is a little bit like if you go to the market and you push your cart up to the cashier and she says, or he says, ‘How many units do you have in there?'” Cook said. “It doesn’t matter a lot how many units there are in there in terms of the overall value of what’s in the cart.”
What’s your opinion on Apples new plan?