- Tim Cook has dismissed as “bologna” speculation that Apple’s iPhone XR is a flop.
- In an interview with Jim Cramer, Cook said that since Apple started shipping the XR, it’s been the most popular iPhone every day.
- Apple has had a rocky start to 2019 after last week’s shock earnings warning.
Tim Cook has called “bologna” on speculation that the iPhone XR is tanking.
In an interview on CNBC show “Mad Money,” Jim Cramer asked for Cook’s response to analysts and commentators, who viewed the iPhone XR as a “flop.”
“Bologna. I call bologna on that,” Cook replied. “Since we began shipping the iPhone XR, it has been the most-popular iPhone every day, every single day, from when we started shipping until now,” he added.
But just hours after the interview, the Nikkei Asian Review reported that Apple is cutting iPhone production by 10% between January and March. This included the XR, which launched in October 2018.
The reality is, it’s going to hard to formally establish how the XR is performing, given Apple decided last year to stop reporting iPhone sales numbers. Instead, the market will need to rely on analyst estimates and guidance akin to Cook’s comments to Cramer.
Cook also said he’d seen this kind of criticism before about sales of new Apple products.
“I’ve heard it in 2001. I’ve heard it in 2005 and ’07 and ’08 and ’10 and ’12 and ’13. You can probably find the same quotes from the same people over and over again,” the CEO said, adding that Apple’s loyal customer base and “virtuous ecosystem” are “underappreciated.”
Apple has had a rocky start to 2019 after it announced last week that its Q1 revenue will be much lower than expected, prompting its stock to tumble. The XR was not mentioned once in the earnings warning.
Cramer asked Cook whether he was surprised by the market’s reaction to Apple revealing the shortfall. “I’m never surprised by the market, to be honest with you. Because I think the market is quite emotional in the short term,” he responded.
Business Insider Emails & Alerts
Site highlights each day to your inbox.