Digital Transformation

Tim Cook's wage crushed 15% as device sales slump: at least App Store saw its best month

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By John McCarthy | Media editor

January 6, 2017 | 3 min read

Apple chief executive Tim Cook is coming under the corporate crosshairs after the company failed to hit performance goals to the extent it suffered its first revenue decline in 15 years.

A filing released by the company revealed that the CEO’s wage packet will be cut by 15%, not so painfully, to $8.7m as the company’s iPhone sales shrink, interest in the Apple Watch stagnates and Macs and iPads suffer a sales reduction.

OnePlus smashes the iPhone in ad

OnePlus smashes the iPhone in ad

iPhone sales dropped consecutively each quarter in 2016, surprising seeing the damage leading rival Samsung endured during the Note 7 scandal.

It’s not all doom and gloom for Apple, though. Last year, it was voted the world’s coolest brand for the fifth consecutive year, it was also among the most loved brands.

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Additionally, the good news is that the company’s app ecosystem remains healthy, with it just seeing its most successful month of sales ever. While it's true fewer people are buying Apple products, it's fair to say the devices market is heavily saturated with iThings, guaranteeing business at the doors of its digital marketplace.

The App Store made around $3 billion in revenue in December. Furthermore, app makers received around $20bn of revenues from sales in 2016.

And if you’re worried about Tim Cook’s salary, don’t be; most of his financial incentive is tied up in company shares, valued at around $136m.

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