New Delhi, Jan 7: Reports have emerged out that iPhone inventor company Apple deducted 15 percent from CEO Tim Cook's salary as for the first time annual sales dropped since the device came out in 2007.
According to Apple’s SEC filings, the company’s annual sales were nearly down by 4 per cent, $223.6bn (£181.6bn) by 3.7%, reaching only $215.6bn, while operating income came up 0.5% short at $60bn. As a result, Cook received a total payout of $8.75m in 2016, including salary and bonuses, which was down 15% from $10.3m in 2015 and also down from 2014’s $9.2m.
Overall, our 2016 performance with respect to net sales and operating income was 7.7 per cent and 15.7 per cent below our record-breaking 2015 levels,” Apple said in the filing.
“However, the 2016 payouts to our named executive officers were significantly less than the annual cash incentive payouts for 2015, reflecting strong pay-for-performance alignment.”
Apple’s rare sales slump is directly linked to the loss of momentum for the iPhone, which generates the majority of the company’s sales.
Sales of iPhones have declined in each of the past three-quarters, slipping to 45.5 million in the September quarter, with reports saying Apple has faced steep competition from Samsung and other smartphone makers and the newest iPhones did not feature enough upgrades to attract customers.
In October, Cook said that demand for the iPhone 7 and the bigger 7 Plus, which feature enhanced cameras and longer battery life, have outpaced supply though Apple would only report quarterly sales for those phones on January 31.