Apple iPhone revenue slump results into CEO Tim Cook 15% salary-cut

The fall in Apple revenues has been observed for the first time since 2001. Also this is for the first time when iPhone sales took a dip, ever since the first iPhone device was introduced in 2007.

Edited By: Deepak Gupta

Updated: January 7, 2017, 5:41 PM IST

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https://www.india.com/technology/apple-iphone-revenue-slump-results-into-ceo-tim-cook-15-salary-cut-1745889/ Copy

Apple CEO Tim Cook (File Photo)

Apple iPhone sales took a slump, which led to the company not meeting its revenue and profit target for the year 2016. The sales dip has made the Cupertino giant cut its CEO Tim Cook’s pay for year.  Cook received $8.75 million (roughly Rs 57.88 crore) in total compensation for 2016, which was $10.28 million in 2015. Earlier, the $10.28 million (roughly) Rs 68.52 crore) pay was declined by the company when Cook assumed office in 2011. However the  base salary of CEO rose 50 per cent, up to $3 million.

“According to a regulatory filing on Friday, Apple said its annual sales of $215.6 billion were 3.7 per cent below its target of $223.6 billion, and its operating income of $60 billion was 0.5 per cent short of the $60.3 billion target,” The Wall Street Journal reported. Not only Cook, but Apple’s five-most senior executives also observed their total compensation going down for fiscal year 2016, each declining around nine per cent to about $22.8 million from $25 million in the previous year. The fall in revenues has been observed for the first time since 2001. Also this is for the first time when iPhone sales took a dip, ever since the first iPhone device was introduced in 2007.

Their 2016 compensation included $2.8 million in salary and $20 million in restricted stock, the report noted. Last year, announcing the report of Q4 of 2016, Apple said it sold 45.5 million iPhones, 9.3 million iPads and 4.9 million Macs. Apple reported a year-over-year decline of 5.2 per cent for iPhones, six per cent for iPads and a massive 14 per cent for the Mac. “Overall, our 2016 performance with respect to net sales and operating income was 7.7% and 15.7% below our record-breaking 2015 levels,” Apple said in the filing to Securities and Exchange Commission (SEC).

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Last year, the company launched their latest flagship series iPhone 7 and have all their hopes glued to it. A set of new versions of iPhone 7 are expected in 2017 as well, including a much anticipated 1oth anniversary iPhone later this year. The whole slew of latest product may help the figures improve in favor of Apple in the fiscal 2017.