A lawsuit filed on behalf of investors alleges that Apple withheld details about just how much iPhone sales had tanked in 2018 and is seeking financial compensation.
Apple released three new iPhones in 2018, the XS, XS Max and XR, with the XS Max the most expensive iPhone ever, starting at $1,099. Collectively, iPhone sales fell 15 percent.
On January 2nd of this year,Apple CEO Tim Cook wrote an extraordinary and unprecedented letter to investors, explaining that sales were lower than he had expected, and revising guidance downward by $9 billion for the quarter.
“While Greater China and other emerging markets accounted for the vast majority of the year-over-year iPhone revenue decline, in some developed markets, iPhone upgrades also were not as strong as we thought they would be.”
After Cook made the announcement, Apple’s stock took a massive hit, falling some $74 billion in market value.
The lawsuit says that Apple knew how bad the picture was for iPhone sales way earlier than January 2nd, and by withholding the information, it committed securities fraud.
According to the San Jose Mercury News, the lawsuit says that anyone who bought Apple stock between November 2, 2018 and January 2, 2019 should sign up to be part of the suit.
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Apple Chief Financial Officer Luca Maestri was also named in the suit, which was filed by the City of Roseville Employees’ Retirement System, a Michigan pension plan.
Apple hasn’t responded to our request for comment
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