Apple CEO Tim Cook was accused of knowing that there would be a decrease in iPhone demand in China and not telling investors about it. The technology giant agreed to pay a large amount to settle this case.
Apple has been in trouble for the last few years with accusations made by investors against CEO Tim Cook. Investors feel that the manager is concerned about something that you deceived He filed a lawsuit alleging that. The claim was related to iPhone sales in the Chinese market.
Today, this case has been concluded. According to Reuters, Apple decided to settle the case. He agreed to pay $490 million. The company denied all the accusations and said it had done nothing wrong. However, it was stated in the case files that he agreed to reach an agreement to avoid further expenses. So what exactly happened? Why were these accusations leveled against Cook?
In a 2018 earnings call, Cook said the situation was bad in countries like Turkey, but added that they were strong in China.
To get answers to these questions to 1 November 2018 We need to go. In an earnings call in 2018, Cook stated that they were facing pressure in some markets due to depreciation of currencies. Among these markets was located in Türkiye. Other countries were places like India, Brazil and Russia. Cook, He never mentioned China.
The CEO said in his statement about China:I wouldn’t put China in this category. Our business in China was very good last quarter. We grew by 16% and we are very happy with it. The iPhone in particular was very powerful. “We were good in other categories too.” He used expressions like and They didn’t have any problems in China. he stated.
A few months later, Apple announced lower-than-expected revenue
But a few months later, in January 2019, the company’s earnings were announced. In a letter he sent to investors, Cook noted that the company’s revenue for the last quarter of 2018 would be $84 billion. This was an amount lower than the expected $89-94 billion. Finally, on January 29, 2019, the company $84.3 billion reported income. The company’s shares fell 25% between November 1 and January 31.
It was stated that the decrease in revenue was due to China’s slowing economy and problems with iPhone sales.
In his statement, Cook stated that China’s slowing economy caused this and that they did not expect such a thing. Additionally, the main reason for the company’s overall revenue decline is China. iPhone revenues are much less than expected He stated that it was.
After what happened, some investors accused Cook of knowing what would happen in China and yet not telling them.
After all this, investors began to make these accusations against Cook. Cook’s, He knew there was a decline in iPhone demand in China but didn’t tell them they claimed. After years of accusations, Apple agreed to pay this amount, which approached half a billion dollars.
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