Apple's Cook Faces Toughest Test Yet Navigating iPhone Slowdown

Flagship product still drives majority of company’s revenues
Analysts say Apple needs to cut iPhone prices to spark sales

Investors shouldn’t abandon Apple, according to King Lip, chief strategist at Baker Avenue Asset Management.(Source: Bloomberg)

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By Mark Gurman

January 3, 2019 at 4:00 AM UTC

This article is for subscribers only.

Apple Inc.’s Tim Cook confirmed Wednesday that the latest iPhones, his flagship product, are not selling up to expectations. The news exposes his toughest challenge since taking over as chief executive officer from the legendary Steve Jobs: how to take the company forward when its top product has lost luster with consumers.

Cook has dealt with a series of controversies during his more than seven years in the role, ranging from the company’s failed Google Maps replacement launch and the need to oust the head of iPhone software in 2012, to concerns over labor and tax practices. He has calmly navigated the politics of President Donald Trump’s administration, and so far has avoided tariffs on the company’s key devices as the U.S.-China trade war widens.