Apple stock news reveal that it’s not going to be a good year for the company. Although its chief executive officer Tim Cook may be doing something right as he has just been given a very nice salary bump.
According to the company’s recent SEC filing, Cook’s pay is going up from $2 million last year to $3 million for 2016. Moreover, Cook’s current pay is 50 percent more than he was offered back in 2013 when he first took on the role of CEO. Back then, Cook’s base salary was around $1.4 million. This went up slightly in 2014 when Cook received a little over $1.7 million. But while Apple’s chief executive will be enjoying bigger paydays, Apple’s stock price (NASDAQ: AAPL) has gone down by $4.25 or 4.220 percent to $96.45. Several analysts have pointed out that the stock can go down further to as low as $90, according to Rich Ross of Evercore ISI.
It is likely that Apple’s stock price going down has nothing to do with Cook’s salary. Rather, it may have something to do with recent reports about the iPhone 6S and 6S Plus devices not performing well in the market. In fact, a recent report reveals that Apple may be looking to cut production of its most current iPhone models by as much as 30 percent during the January to March quarter.
According to a recent report from Nikkei, Apple had initially told its parts makers that production volume for iPhone 6S and 6 Plus will be at the same level as previous iPhone models for the quarter. However, the company has reportedly been struggling to move existing iPhone inventory since it launched last September. Customer feedback for new models points out that there is not much significant difference between the iPhone 6S and 6 Plus and predecessors. And this may have been the reason sales are not impressive. Moreover, the appreciation of the dollar also did nothing to improve sales of the said iPhone models in certain emerging markets.
Reports also suggest that Apple only plans to scale back on the production of iPhone 6S and 6 Plus during the first quarter of the year to allow for current inventory to move. Moreover, it is expected that the company will ask suppliers to return to normal production levels during the next quarter of the year.
Net sales for Apple in 2015 went up by an impressive 28 percent or $50.9 billion. This brought total net sales last year to $233.7 billion. For now, analysts continue to be optimistic for Apple’s stock as it continues to hold a strong buy recommendation from at least 20 analyst firms.