Two days ago Apple released its earnings for the quarter that included the debut of the Apple Watch, the first new product category from the tech giant since the launch of the iPad, and since the death of the company's founder Steve Jobs.
Apple shares declined sharply in after-hours trading despite results beating expectations for profit and revenue. But that's not the interesting thing here. The interesting thing is that Apple decided to hide the numbers on sales of the Watch, instead grouping those results with iPods, Apple TV and other devices.
Apple CEO Tim Cook said the company didn’t want to give the competition insights on a product it was working hard on.
But Berlin-based writer Leonid Bershidsky is calling nonsense, saying Apple was always giving insights on new products besides stiff competition.
For example, Jobs's Apple reported the sales of the first iPhone - 270,000 units - in its filing for the quarter ending on June 30, 2007, even though the revolutionary phone went on sale on June 29.
And the iPhone had strong competition: Apple was a newcomer to the mobile handset market, and could have used the same stealth tactic, hiding iPhone sales in the "other" category.
According to Bershidsky, Apple decided to hide these numbers because it is afraid. Not of the competition, but of falling short. The expectations have changed, and Apple is now a much different company.
“In Jobs's day, the company only needed to beat the competition and satisfy customers. Today, given the expectations, Cook knows he can never do enough,” he writes.
He concludes by saying that the iPhone is still, and might be for a long time, Apple’s flagship device.
“Apple, for all its power and seeming diversity, depends on the iPhone for 63.2 per cent of its sales, up from 52.8 per cent a year ago. It's not exactly a one-hit wonder, but it would be a much smaller company if its flagship started going down.”