New fines imposed on Apple due to CEO Tim Cook! Apple agreed to pay a huge fine to shareholders, amounting to $490 million. This came after Apple, led by Tim Cook, was accused of concealing important information about... Company sales In China. The question here is: What is the motive behind hiding such information from shareholders? And what is happening to Apple sales in China! Here are all the details in this article, God willing.

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Apple pays a $490 million fine to shareholders

Apple decided to submit to shareholder complaints. As it agreed to pay huge financial compensation in exchange for settling a lawsuit by a group of shareholders. The shareholders directed the lawsuit against Apple CEO Tim Cook. It hides important information, such as the decline in demand for iPhones in the Chinese market.

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How did Tim Cook deceive shareholders?

The matter began in 2018, when Apple faced many pressures in some countries such as Turkey, India, Brazil and Russia. This is due to the decline in the value of the local currency. This was a reason for reducing demand for iPhones. Here came Tim Cook's mistake, as he did not inform shareholders of this decline in demand and sales. As a result, shareholders filed a lawsuit accusing Tim Cook of deliberately concealing information.

The matter did not end there, but Tim Cook said that sales in China were very strong in the last quarter. Sales increased by 16%. In particular, regarding sales of iPhone devices, Tim Cook said that sales achieved very significant growth, exceeding 10%. As for sales of the rest of the devices provided by Apple, Tim Cook said that they were slightly stronger than last year, but they achieved the required goals.

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How did shareholders discover Tim Cook's hoax?

Fast forward to January 2019, and Tim Cook told shareholders that Apple's revenue for the fourth quarter of 2018 would be $84 billion. This is a much lower number than the initial indicators, which ranged from 89 to 93 billion dollars!

In the same context, Apple ended up announcing that its total revenues for the last quarter of 2018 were only $84.4 billion. This led to a significant decline in Apple's stock price by 25%. Then Tim Cook intervened again and said that the slowdown in Apple's sales in China was the main reason for the decline in revenues.

After that, Apple's CEO made statements that the company had expected such problems to occur in the Chinese market; Due to the economic slowdown in China. The decrease in revenues is due to a decrease in sales in China.

At this point, shareholders believed that Tim Cook was aware of the decline in demand for iPhones in China. But he chose not to reveal this information. Moreover, Apple has not yet admitted that it deceived its shareholders. But Apple wants to settle the lawsuits in order to avoid paying additional costs associated with litigation.

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Of course, Apple will defend its CEO, but when mistakes like these come to light, they make the consumer lose confidence in a company whose primary commodity is user trust, and this is much more dangerous than the slowdown in Apple’s sales in China. What do you think? Tell us in the comments.




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