Apple changes the date of its quarterly earnings call for no real reason? That surely cannot happen.
Apple announced the fourth-quarter earnings call would take place on Thursday, Oct. 27 last week. However, an update on Apple’s Investor’s news web page suggested that it had been rescheduled to Tuesday, October 25th due to a scheduling conflict. The update did not elaborate what the company meant by ‘a scheduling conflict’ and that has been arising continuous speculations. Of course, Apple has done this sort of rescheduling before, but they are rare. There has to be a concrete reason we can actually believe to be true.
Apple rescheduled its Q2 earnings call earlier this year too. The reason was not at all related to sales or legal matters. The rescheduling was done so that Apple executives could attend the memorial service of Bill Campbell. No one could go against that or raise any sort of question as that would clearly have been a humiliation of the late tech icon. Ethical boundaries, therefore, kept everyone’s mouth sealed.
Apple has been launching new tech products sometime during the month of October for five consecutive years now (one or two exceptions do no harm as well), that is not what’s out of order. Why would the tech giant shift the earnings call’s date without specifying a reason clearly? Apple blogs around the internet, including the Cultofmac, have made some valid guesses that can be considered a solid reason for this.
As we are well aware, iPhone 7 sales figures have been varying across different regions. The initial estimates were predicted by a number of analysts and they all were not the same. Even if the estimates targetted the same region. For that reason, we cannot rely upon these figures. Never before has Apple been so reluctant in providing opening weekend numbers for its iPhone releases. Reportedly, the reason is the supply constraints.
Why Did Apple Shift the Q4 earnings call’s date?
The company did not offer any explanation for moving the date and did not respond in any way when reporters confronted them. Are supply constraints really the only reason? We don’t think so. One reason can be the release of the new mac. MacBook keynote 2016 was anticipated to release in the Q4 of this year and that got all the mac users highly excited for the launch. There is a chance this event will be the release of the new MacBook. October would be a golden period for the company to release it after all.
iPhone 7 confounds us to believe its performance so far is phenomenal. However, that might not be the case. While the phone gained amazing popularity among the brand loyals and other users, it fails to generate comparatively greater revenue for the company as previous iPhone models did. It was between $45.5B and $47.5B, which is much lower than last year’s $51.5B. Apple surely does not seem to be progressing in terms of yearly revenue growth. Seeing this, nostalgia often kicks in and people think future for Apple after Steve Jobs’ death is quite dull. Tim Cook goes for a very different perspective of business than Jobs did. But we cannot deny that his way of doing it, if not better, is equally effective. However, tables can turn any time now with the release of the new mac, as the mac rumors and mac news around social media suggests.
What can we expect?
Apple’s decision of announcing the new Mac after the fourth-quarter fiscal earnings call (or so we anticipate) seems to be a wse decision. Q4 sales are definitely not going to be as great as last year’s, that would create an environment of anguish among investors and the company’s parters. However, they may already know it was not heading towards gold mines. The sad announcement will come before the new release of updated mac, which will be an outburst of celebrations. The new iOS update did nothing much to improve the company’s falling reputation. The new schedule will make people see Apple’s chance of a bright future once again. Or at least create an illusion of the same. This will create a great balance.
Ben Lovejoy from 9to5mac apple blog offers the similar explanation as well:
“Apple doesn’t want its shiny new Mac launch to be overshadowed by what are likely to be disappointing iPhone sales. So, a Mac keynote on the Tuesday followed by the announcement of declining sales on the Thursday would lead to a brief celebration followed by gloom.”
Another reason for the shift can be that it allows more time for iPhone sales, as Elmer-DeWitt suggests. However, that contradicts a valid fact. Changing the date of the earnings call doesn’t change the reporting period. Revenue will therefore remain same either way. Whatever the reason might be, MacBook Pro has now got an update and it will be releasing quite soon. Users are expecting more and more from it and Apple seems to be striving to not let them down.
What are your opnions regarding the reason Apple moved the date of the earings call?